Show a detailed journalizing of the following transactions:

Galle Inc. entered into the following transactions during January;

Jan 1- Borrowed $250,000 from First Street Bank by signing a note payable.
Jan 4 - Purchased $25,000 of equipment for cash.
Jan 6 - Paid $2,250 to landlord for rent for January.
Jan 15 - Performed services for customers on account, $10,000.
Jan 25 - Collected $3,000 from customers for services performed in Transaction d.
Jan 30 - Paid salaries of $2,500 for the current month.

Question

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TomShelby TomShelby · Answer 1 · 2019-09-17T03:56:42+02:00

Answer:

cash (+assets) 250,000 debit

Note Payable (+Liabilities) 250,000 credit

equipment (+Assets) 25,000 debit

Cash (-Assets) 25,000 credit

Rent expense (-Equity) 2,250 debit

Cash (-Assets) 2,250 credit

Account Receivable (+Assets) 10,000 debit

Service Revenue (+Equity) 10,000 credit

Cash (+ Assets) 3,000 debit

Account Receivable (-Assets) 3,000 credit

Salaries expense (-Equity) 2,500 debit

Cash (-Assets) 2,500 credit

Explanation:

We will post after each account, which component of the accounting equation modifies.

Also, we must remember than journal entries should have debit = credit