Question

I have an accounting question about journaling. I was wondering if anyone could help me. I don't understand something.

Answer 1

The May transactions of Step Aside Corporation were as follows.
May 4 paid $700 due for supplies previously purchased on account.
7 Performed advisory services on account for $6,800.
8 Purchased supplies for $850 on account.
9 Purchased equipment for $1,000 in cash.
17 Paid employees $530 in cash.
22 Received bill for equipment repairs of $900.
29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1
this is my problem for homework. I have made an excel sheet and put all of this info on here. But in my text book it shows a credit of the same amount under each debit. I dont understand it

Answer 2

looks like acc 101 stuff

Answer 3

yes should be easy

Answer 4

you seem to be asking about the double entry accounting method

Answer 5

each transaction affects at least 2 accounts in the general accounting equation:

Assets = Liabilities + Equity

Answer 6

yes I just didnt understand how you figured out which account to credit/debit
I get the cash ones... but the others?

Answer 7

4 paid $700 due for supplies previously purchased on account.

Cash account affected (Asset)
Accounts Payable affected (Liability)

7 Performed advisory services on account for $6,800.

Accounts Receivable affected (Asset)
Service Revenue affected(Equity)

8 Purchased supplies for $850 on account.

Supples affected (Asset)
Account Payable affect (Liability)

9 Purchased equipment for $1,000 in cash.

Equipment (Asset)
Cash (Asset)

17 Paid employees $530 in cash.

Payroll (Equity)
Cash (Asset)

22 Received bill for equipment repairs of $900.

Repair expense (Equity)
Account Payable (Liability)

29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1

Prepaid rent (Asset)
Cash (Asset)

Answer 8

there is a generic table of accounts that should be included in your study material

Answer 9

I will look harder. thank you very much I think I have it figured out now

Answer 10

if you cant find a specific account, just name it something the tells you what it is ...

4 paid $700 due for supplies previously purchased on account.

Accounts Payable 700
Cash 700

7 Performed advisory services on account for $6,800.

Accounts Receivable 6800
Service Revenue 6800

8 Purchased supplies for $850 on account.

Supples 850
Account Payable 850

9 Purchased equipment for $1,000 in cash.

Equipment 1000
Cash 1000

17 Paid employees $530 in cash.

Payroll Expense 530
Cash 530

22 Received bill for equipment repairs of $900.

Repair expense 900
Account Payable 900

29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1

Prepaid rent 1200
Cash 1200

Answer 11

ty ty I understand now. I need to read more I was moving too fast I think