Journalize the Following Business Transactions in General Journal Form

question 199

Essay

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.
1. The company issues ordinary shares in exchange for ₤25,000 cash.
2. Purchased ₤400 of supplies on credit.
3. Purchased equipment for ₤10,000, paying ₤3,000 in cash and signed a 30-day, ₤7,000, note payable.
4. Real estate commissions billed to clients amount to ₤4,000.
5. Paid ₤700 in cash for the current month's rent.
6. Paid ₤200 cash on account for supplies purchased in transaction 2.
7. Received a bill for ₤600 for advertising for the current month.
8. Paid ₤2,200 cash for salaries.
9. The company paid dividends of ₤1,200.
10. Received a check for ₤3,000 from a client in payment on account for commissions billed in transaction 4.

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Definitions:

Arrangement

The act or process of organizing or ordering items, substances, or elements according to a specific pattern or sequence.

Functional Fixedness

A cognitive bias that limits a person’s ability to use an object only in the way it is traditionally used.

Mental Set

A psychological tendency to approach situations in a certain way due to past experiences or habits, which can limit problem-solving abilities.

Unnecessary Constraints

Limitations or restrictions that are not required and can hinder creativity, progress, or the achievement of goals.