Transactions for Joan Jett Company for the Month of October

question 148

Essay

Transactions for Joan Jett Company for the month of October are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations.
1. Invested $42000 cash in the business.
2. Purchased land costing $28000 for cash.
3. Purchased equipment costing $18000 for $4000 cash and the remainder on credit.
4. Purchased supplies on account for $800.
5. Paid $1200 for a one-year insurance policy.
6. Received $3500 cash for services performed.
7. Received $4000 for services previously performed on account.
8. Paid wages to employees for $2800.
9. Petty withdrew $2300 cash from the business.

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Definitions:

Form Hypothesis

The process of developing a proposed explanation for a phenomenon, made as a starting point for further investigation.

Circular-Flow Model

A diagram that traces the flow of resources, products, income, and revenue among economic decision makers.

Households

Individuals or groups of people living together as a single unit, making economic decisions regarding consumption, savings, and labor supply.

Resource Market

A market where resources (like labor, capital, and raw materials) used to produce goods and services are bought and sold.