Journalize Fred Buchanan's July Transactions Using the Combination Journal Provided

question 33

Essay

Journalize Fred Buchanan's July transactions using the combination journal provided.Prove the journal.Fred uses the modified cash basis for his accounting records.
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$\begin{aligned} \text { July } 1 & \text { Fred Buchanan invested } \$ 100,000 \text { in his business. } \\ 2 & \text { Borrowed } \$ 50,000 \text { from the bank. } \\ 3 & \text { Received } \$ 1,100 \text { cash from customers. } \\ 7 & \text { Bought supplies on account, } \$ 750 \\ 10 & \text { Paid part-time receptionist } \$ 1,300 . \\ 15 & \text { Paid advertising bill } \$ 1,500 \text {. } \\ 17 & \text { Purchased } \$ 14,000 \text { of office furniture paying } \$ 4,000 \text {; the balance on account. } \\ 22 & \text { Billed credit customers, } \$ 4,500 \text {. } \\ 27 & \text { Received } \$ 1,000 \text { from credit customers. } \\ 29 & \text { Received } \$ 5,500 \text { from cash customers. }\end{aligned}$

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, representing the company's profit.

Dividends Paid

The sum of money paid by a company to its shareholders out of its profits or reserves.

Cash Flow

The aggregate circulation of cash and cash-like resources transitioning into and out of an enterprise.

Creditors

Individuals, banks, or other entities that lend money or extend credit to others, with the expectation of being repaid, often with interest.