Basic Accounting Journal Entries Exercise

by Fatima
(Philippines)

On March 1, 2008, Giny Tyler established Seltzer Reality. Ginny completed the following transactions during the month of March:


a. Opened a business bank account with a deposit of 30,000 from personal funds.
b. Purchased supplies (pens, file folders, papers, etc.) on account, 2,650.
c. Paid creditor on account, 1,500.
d. Earned sales commissions, receiving cash, 36,750.
e. Paid rent on office and equipment for the month, 5,200.
f. Withdrew cash for personal use, 8,000.
g. Paid automobile expenses (including rental charge) for month, 2,500, and miscellaneous expenses, 1,200.
h. Paid office salaries, 9,250.
i. Determined that the cost of supplies on hand was 900; therefore, the cost of supplies used was 1,750.

Indicate the effect of each transaction.



SEE COMMENT BELOW FROM ANONYMOUS VISITOR FOR FULL SOLUTION.


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Comments for Basic Accounting Journal Entries Exercise

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Supplies adjustment
by: Joshua

While supplies and supplies expenses is 1750.

Not sure what your question or comment here means Joshua. Maybe post again.

- Michael

Answers March 01 2008 transactions
by: Anonymous

a). Cash on hand.......30,000.00
Investment.................30,000.00
To record investment by owner.

b). Supplies...............2,650.00
Accounts Payable..............2,650.00
To record purchase supplies on account.

c). Accounts Payable........1,500.00
Cash.........................1,500.00
To record payment to creditor.

d). Cash....................36,750.00
Sale commission................36,750.00
To record earned sale commission.

e). Rent expense...............5,200.00
Cash.............................5,200.00
To record paid for office and equipment rental

f). Withdraw................8,000.00
Cash..........................8,000.00
To record withdraw by owner.

g). Rent expense...............2,500.00
Miscellaneous expense......1,200.00
Cash............................3,700.00
To record payment for automobile & miscellaneous expense.

h). Salaries expense.........9,250.00
Cash..........................9,250.00
To record payment for office staff salaries.

i). Supplies expense............1,750.00
Supplies on hand.................1,750.00
To record supplies expense for march.



Thanks for the solution Mr. Anonymous!

- Michael Celender
Accounting Basics for Students



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