[gottabme]

I am trying to place the correct journal entries for each of the situations below. I I think I have the first one but I am confused.

1.Took out a school loan for college.
Cash Increase: Total assets Increase
Loan Increase: Total liabilities Increase

2. Paid this month’s rent.


3. Sold your old computer for cash at what it cost to buy it.


4. Received week’s paycheck from part-time job.


5. Received interest on savings account.


6. Paid monthly payment on car loan (part of the payment is principal; the remainder is interest).

[gottabme]

One more thing with this problem. Should I look at the formula assets = liabilities + owners equity and then list each item as either an asset, liability or O/E.

Never mind. I'm confusing myself again.

[morgaine300]

If you're doing journal entries, then you need to be doing debits & credits for each entry. Is this actually what you are trying to do?

There's nothing wrong with using the accounting equation, but if it's journal entries, that's not what it's asking for. You do absolutely need to know what kind of account each account is, because that's how you determine debit or credit. In terms of just increase/decrease, account, and type of account, you've got the first one correct. But that isn't a journal entry. What you're doing is more like what you'd do before getting to debits & credits. (You need that info, but it doesn't stop there.)

If you could clarify what you're actually supposed to be doing, I could help more. Just keep in mind we aren't here to do any work for you -- but I can explain the debit/credit rules and do a couple of examples or something.

[949]

Yeah give more info about the instructions or just type exactly what the instructions are in the material.