use information from T-account in exercise 2-15 to prepare general journal entries for each of the seven transaction a through g
To prepare general journal entries for each of the seven transactions described in exercise 2-15, you will need to review the information provided in the T-account and identify the specific accounts affected by each transaction. Here's a step-by-step guide to help you:
1. Review the T-account provided in exercise 2-15 and identify the account balances before the transactions (beginning balances). Make note of the account names and their respective debit or credit balances.
2. Analyze each transaction description and determine which accounts are affected. Identify the account(s) that are debited and the account(s) that are credited for each transaction.
3. Use the rules of double-entry bookkeeping to ensure that each transaction has equal debits and credits.
4. Prepare the general journal entries by recording the date, the account(s) debited, the account(s) credited, and the corresponding dollar amounts.
Example format for a general journal entry:
Date | Account Debited | Account Credited | Amount
Now, let's go through each transaction and prepare the general journal entries:
Transaction a:
Assuming the transaction involves an increase in cash, the entry would be:
Date | Cash | Owner's Capital | $X
Transaction b:
Assuming the purchase of supplies on account, the entry would be:
Date | Supplies | Accounts Payable | $X
Transaction c:
Assuming services provided for cash, the entry would be:
Date | Cash | Service Revenue | $X
Transaction d:
Assuming purchase of equipment for cash, the entry would be:
Date | Equipment | Cash | $X
Transaction e:
Assuming payment of cash to reduce accounts payable, the entry would be:
Date | Accounts Payable | Cash | $X
Transaction f:
Assuming cash received from customers on account, the entry would be:
Date | Accounts Receivable | Cash | $X
Transaction g:
Assuming payment of expenses in cash, the entry would be:
Date | Expense Account | Cash | $X
Remember to replace "Account" with the specific account names from your exercise. Assign appropriate dollar amounts for each transaction based on the information given in exercise 2-15.
By following these steps and using the provided information, you should be able to prepare the general journal entries for each of the seven transactions.