Journalize the Following Business Transactions in General Journal Form

question 131

Essay

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.
1. Received $35,000 cash as investment from Roche Stone, the company's owner.
2. Purchased equipment for $50,000, paying $15,000 in cash and giving a note payable for the remainder.
3. Paid $3,000 for a one-year insurance policy.
4. Billed customers for $12,500 of services provided on account.
5. Paid monthly rent of $1,500.
6. Performed $7,000 of services and immediately received $7,000 cash.
7. Collected $2,000 from customers on account.
8. Hired a secretary.
9. Paid the secretary his first week's salary of $500.

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Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Terms 3/10

A payment term indicating that a buyer can take a 3% discount on the invoice amount if the payment is made within 10 days of the invoice date.

Credit Terms

The conditions under which a seller will extend credit to a buyer, including the repayment time frame and any interest charged.

Merchandise

Goods bought and sold in the normal course of business, typically referring to products available for resale to customers.