Concord Repair Shop had the following transactions during the first month of bus

Question

Concord Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions.

Aug. 2 Invested $12,320 cash and $2,710 of equipment in the business. 7 Purchased supplies on account for $480. (Debit asset account.) 12 Performed services for clients, for which $1,193 was collected in cash and $722 was billed to the clients. 15 Paid August rent $580. 19 Counted supplies and determined that only $296 of the supplies purchased on August 7 are still on hand

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Aug 2 Cash a/c 12320 Equipment 2710 Owner's capital a/c 15030 (To record investment in bussiness) Aug 7 Supplies assets a/c 480 Account payable a/c 480 (To record supplies account) Aug 12 Cash a/c 1193 Account receivable 722 Service revenue a/c 1915 (To record performed service) Aug 15 Rent expenses 580 Cash a/c 580 (To record rent expenses paid) Aug 19 supplies expenses a/c 184 Supplies assets a/c 184 (To record supplies expenses)

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