Question

Selected transactions for Alvarado Company during its first month in business are presented below. Alvarado's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Common Stock, and No. 332 Dividends. a. Journalize the transactions. (Omit explanations.) b. Post the transactions using the standard account form.
(a) General Journal J1
Date Account Titles Ref. Debit Credit
Sept. 1
5
25
30
(b)
Cash No. 101
Date Explanation Ref. Debit Credit Balance
Sept.  1 Invested $10,000 cash in the business in exchange for common stock.
5 Purchased equipment for $12,000 paying $4,000 in cash and the balance on account.
25 Paid $2,400 cash on balance owed for equipment.
30 Declared and paid a $500 cash dividend.
Alvarado's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Common Stock, and No. 332 Dividends.

Answer 1

Answer:

cash     10,000 debit

  common stock   10,000 credit

equipemnt 12,000 debit

       cash                    4,000 credit

      account payable 8,000 credit

account payable  2,400 debit

               cash            2,400 credit

dividends          500 debit

        cash                 500 credit

Explanation:

To record the events in the journal entry we must make sure debit = credit on eahc of them

Cash,  will increase from debit so when cahs enters the company is being debit

when cash leaves the company/ it is used we credited.