Journalize the following transactions
-Received cash from investment made by owner,$15000. Received cach providing accounting services, $8000. Billed customers on account for providing services, $4000. Paid Advertising expense 400. Received cash from customers on account 3500.
To journalize the transactions, we need to record them in the accounting journal. Each transaction will have a debit entry and a corresponding credit entry. Here are the journal entries for the given transactions:
1. Received cash from investment made by owner, $15,000:
Debit: Cash - $15,000
Credit: Owner's Capital - $15,000
2. Received cash providing accounting services, $8,000:
Debit: Cash - $8,000
Credit: Service Revenue - $8,000
3. Billed customers on account for providing services, $4,000:
Debit: Accounts Receivable - $4,000
Credit: Service Revenue - $4,000
4. Paid Advertising expense, $400:
Debit: Advertising Expense - $400
Credit: Cash - $400
5. Received cash from customers on account, $3,500:
Debit: Cash - $3,500
Credit: Accounts Receivable - $3,500
Please note that these journal entries are based on the assumption that the business is using a single-entry accounting system.
To journalize the given transactions, we need to prepare journal entries for each transaction. Here's how you can journalize the transactions:
1. Received cash from investment made by the owner, $15,000:
- Debit: Cash $15,000
- Credit: Owner's Equity (Capital) $15,000
2. Received cash providing accounting services, $8,000:
- Debit: Cash $8,000
- Credit: Service Revenue $8,000
3. Billed customers on account for providing services, $4,000:
- Debit: Accounts Receivable $4,000
- Credit: Service Revenue $4,000
4. Paid Advertising expense, $400:
- Debit: Advertising Expense $400
- Credit: Cash $400
5. Received cash from customers on account, $3,500:
- Debit: Cash $3,500
- Credit: Accounts Receivable $3,500
These journal entries record the effects of the transactions on the various accounts. By following this format, you can easily journalize any transaction.