Answer:
Sun Devil Hair Design
Journal Entries:
February 2:
Debit Advertising Expense $700
Credit Cash Account $700
To record the payment for advertising for the month of February.
February 7:
Debit Supplies $1,300
Credit Accounts Payable $1,300
To record the purchase of supplies on account.
February 14:
Debit Cash Account $2,900
Credit Service Revenue $2,900
To record the provision of beauty services to customers for cash.
February 15:
Debit Salaries Expense $900
Credit Cash Account $900
To record the payment of employee salaries for the month.
February 25:
Debit Accounts Receivable $1,000
Credit Service Revenue $1,000
To record the provision of beauty services on account.
February 28:
Debit Utility Expense $300
Credit Cash Account $300
To record the payment of utility bill.
Explanation:
Sun Devil Hair Design uses the general journal to record the its daily business transactions. The entries are made to reflect the accounting equation of Assets being equal to Liabilities + Equity at all times. When entering transactions in the general journal, the first step is to identify the accounts that are affected by each transaction. The account to be debited is recorded first followed by the account to be credited. Note that more than two accounts can be involved. However, with the double entry system of accounting, the accounting equation is always in balance.
