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:

Operating Capacity

The maximum output or production level that a facility or business can achieve under normal circumstances.

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing while maintaining a stable financial structure.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

Dividends Paid

The total amount of dividend payments made by a corporation to its shareholders over a specified period, usually quarterly or annually.