Answer:
(a) Stockholders invested $12,000 in the business in exchange for common stock.
Account Title and Explanation:
Cash ( Stock holder invested cash in the business for stock)
Debit = $12000
Credit= $12000
(b) Insurance of $800 is paid for
the year.
Account Title and Explanation:
Cash( Paid Insurance for one year)
Debit= $800
Credit= $800
(c)Supplies of $1,800 are purchased on account.
Account Title and Explanation:
Supplies( Purchased supplies on Account)
Debit = $1,800
Credit = $1,800
(d) Cash of $7,500 is received for services rendered.
Account Title and Explanation:
Cash( Received cash for services rendered)
Debit = $7,500
Credit = $ 7,500
Explanation:
A journal entry is a well detailed entry or record of any transactions carried out by an organization . It is a way to keeps records of any day to day financial transactions which includes the summaries of any debts or credits carried out by an organization.
We have seven types of journal entries and they are:
a. Opening entry
b. Closing entry
c. Simple entry
d. Compound entry
e. Rectifying entry
f. Adjustment entry
g. Transfer entry
