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-   -   How to journalize this transaction ? (https://www.askmehelpdesk.com/showthread.php?t=291560)

  • Dec 12, 2008, 11:17 PM
    jumpol
    how to journalize this transaction ?
    Could you please check whether I did it right or wrong ?

    1.Dwyer Delivery Service,a proprietorship, began operations by receiving from the owner $5000 cash and a truck valued at $10000. The business gave Paul Dwyer, the oener, capital in the business.

    answer Debit Cash 5000
    Truck 10000
    Credit Capital 15000

    What category should I put truck in ?

    2. Complete a large delivery job, billed the customer $2000, and received a promise to collect the 2000 within one week.

    answer Debit Account Payable 2000
    Credit Service Revenue 2000

    3. Purchased fuel for the truck, paying $100 with a company credit card. Credit Account Payable.

    answer Debit Fuel expense 100
    Credit Account Payable 100

    Thank you so much for your kindness.
  • Dec 13, 2008, 10:12 AM
    pready

    1. Truck is Equipment, a noncurrent Asset

    2. Debit Accounts Receivable, a current Asset

    3. Correct
  • Dec 13, 2008, 02:53 PM
    jumpol
    Thank you so much.
  • Aug 4, 2011, 08:20 AM
    khimmie28
    Delivery on credit?
  • Aug 4, 2011, 09:00 AM
    pready

    Debit Accounts Receivable
    Credit Sales Revenue

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