Review each of the transactions carefully. Following the example below, complete the analysis and journal entry for
Question:
Review each of the transactions carefully.
- Following the example below, complete the analysis and journal entry for all the transactions.
Jim Horton is updating his bookkeeping records at the end of the month. He has four transactions to enter in the general journal, but he is not sure how to analyze the transactions in order to complete the entries. Use the chart of accounts on the inside cover of the textbook or the handout and provide your analysis and create a general journal for the transactions listed below.
Transaction #1: On March 1st Jim Horton purchased a new computer for $1500. Jim paid $500 cash and put the remainder on his credit card.
Transaction #2: On March 30 Jim Horton obtained a grant for $750 from the Ontario government for small businesses. He will invest this money in his firm.
Transaction #3: On April 22 Jim Horton purchased office furniture worth $1000 on a store credit with zero dollars down. Interest will accrue after 90 days.
Transaction #4: On April 30 Jim Horton purchased a printer. He paid $100 by cheque for the machine.
- Review each of the transactions carefully.
- Following the example below, complete the analysis and journal entry for all the transactions.