Journalize the Following Business Transactions in General Journal Form

question 1

Essay

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.
1. The owner, Hank Williams, invested $50,000 to start a record Company operating as a sole proprietorship.
2. Received a $10,000 deposit from a customer to produce a record.
3. Purchased $15,000 of sound equipment using cash and a $10,000 loan.
4. Paid 6 months rent in advance. Monthly rent is $750.
5. Provided services for $12,500, half of which was collected in cash at the time of the sale.
6. Paid staff salaries of $3,000.
7. Paid himself $2,500.
8. Collected the remaining outstanding balance on customer accounts.
9. Paid the outstanding loan, in full, from the purchase of the sound equipment.
b. What is the cash balance that would appear on the trial balance at the end of the period?
a. Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.

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Definitions:

Potential Output

The highest level of economic output an economy can sustain over the long term without increasing inflation, determined by available resources and technology.

Aggregate Demand

The sum total of desires for products and services within an economic entity, marked at a specific price level through a chosen timeframe.

Expansionary Gap

Occurs when an economy's actual output is higher than the potential output, often leading to higher inflation.

Active Approach

A management strategy where decisions are made using discretionary methods to try to outperform the market or a specific benchmark.