Analyze the following transactions of Pretty Party Planners in the manner shown for the December 1 transaction. Also, record each transaction in the journal.
Dec. 1 Paid monthly utilities expense of $200.
(Analysis: The expense, utilities expense, is increased; therefore, debit Utilities Expense. The asset, cash, is decreased; therefore, credit Cash.)
1 Utilities Expense..........................200
Cash..........................................................200
4 Borrowed $20,000 cash, signing a note payable.
8 Purchased equipment on account, $4,000.
12 Performed service on account for a customer, $6,000.
19 Sold land for $24,000 cash that had cost this same amount.
22 Purchased supplies for $1,200 and paid cash.
27 Paid the liability created on December 8.