[jonnyturbo11]

How would all of these be put into a journal entry?

1. Purchases a 12 month insurance policy. Issued check #301 for $2400

2. Rented a store for $500 per month and paid first 6 months rent in advance. Issued check #302

3. Purchased and paid for equipment as follows:
-Furniture = $5000
-Fixtures = $9000
-Equipment = $6000
Issued check #303

4. Purchased cut flowers and plants from ABC Flower Wholesalers for $3000 agreeing to pay for the goods in 30 days

5. Purchased office supplies issuing check #304 for $950

THANKS!

[davemayank]

STATIONARY DR 950
PURCHASE DR3000
Insurance exp. a/c DR2400
Rent Exp. Ac DR500
Advance rent ac DR2500
FURNITURE AND FIXTURE A/C DR 20000
Bank CR 25400
ABC FLOWER CR 3000
OFFICE SUPPLIERS CR 950

[pready]

1. Debit PrePaid Insurance for the amount
Credit Cash for the amount

2. Debit Prepaid Rent for the amount ($500 * 6 months)
Credit Cash for the amount

3. If one PP & E account is used:
Debit PP&E for the total amount
Credit Cash for the total amount

If individual PP & E accounts are used:
Debit PP&E - Furniture for 5,000
Debit PP&E - Fixtures for 9,000
Debit PP&E - Equipment for 6,000
Credit Cash for the total amount

4. Is this for merchandise being sold by the business,then:
Debit Merchandise Inventory for the amount
Credit Accounts Payable for the amount

If this is an expense:
Debit Appropriate expense Account for the amount
Credit Accounts Payable for the amount

If this is for inventory that is used in the business:
Debit Appropriate Inventory Account for the amount
Credit Accounts Payable for the amount

5. Debit Office Supplies for the amount
Credit Cash for the amount

[morgaine300]

Perhaps all three of you should take a look at the guidelines for posting homework:

Ask Me Help Desk - Announcements in Forum : Homework Help

Especially those of you who have been around long enough to know better.

[jonnyturbo11]

That was not homework morgaine, it was questions from my study guide for an exam I have next week.

[morgaine300]

It's still a good idea for you to attempt to do your own work first (graded or not), post what you think and let someone check it for you and let you know what may be incorrect. Looking at answers only does not necessarily mean someone understands where those answers came from or why. Doing the work and then having someone go over that work is a much better way to learn it.

And the two posters do not know that it's a study guide and should not be just answering things for people.

[jonnyturbo11]

All right sounds good