Question

equirement 1. Post the journal entries to the​ T-accounts. Use the dates as posting references in the​ T-accounts. We will post to the accounts one transaction at a time. Begin by posting the event from the 2nd. Received $ 14 comma 000 contribution from Brett Lawrence​, ​owner, in exchange for capital. ​(We will post to the accounts one transaction at a time. Post only the transaction from July 2 in this​ step.)

Answer 1

Answer:

journal entry:

Cash    14,000 debit

  Brett Lawrence Capital Account   14,000 credit

T-Accounts:

     Cash

Debit          Credit

14,000

Lawrence Capital Account

Debit                  Credit

                      14,000

Explanation:

The July 2nd Transaction will be recorded following the following idea:

The company is receiving cash. Cash will be used to operate the business and therefore, is an asset. Then, the origin of the asset is the owner, Brett Lawrence. We will credit this account by the contributed amount.

This makes the journal entry balance as debit = credit

FInally the T-account will disclosure the same values, Lawrence T-account will show the credit

and cash will show the debit.