What is the journy entry for 101 Cash $ 18,000
126 Supplies 11,800
128 Prepaid insurance 2,000
167 Equipment 23,000
168 Accumulated depreciation—Equipment $ 6,500
301 A. Cruz, Capital 42,935
302 A. Cruz, Withdrawals 6,000
403 Services revenue 48,600
612 Depreciation expense—Equipment 2,000
622 Salaries expense 28,334
637 Insurance expense 2,041
640 Rent expense 3,256
652 Supplies expense 1,604
Totals $ 98,035 $ 98,035
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Answer (1)
Given balances:Cash – 18,000 (Debit)Supplies – 11,800 (Debit)Prepaid Insurance – 2,000 (Debit)Equipment – 23,000 (Debit)Accumulated Depreciation—Equipment – 6,500 (Credit)A. Cruz, Capital – 42,935 (Credit)A. Cruz, Withdrawals – 6,000 (Debit)Services Revenue – 48,600 (Credit)Depreciation Expense—Equipment – 2,000 (Debit)Salaries Expense – 28,334 (Debit)Insurance Expense – 2,041 (Debit)Rent Expense – 3,256 (Debit)Supplies Expense – 1,604 (Debit)JournalizingTo record assetsDebit Cash 18,000Debit Supplies 11,800Debit Prepaid Insurance 2,000Debit Equipment 23,000Credit Accumulated Depreciation 6,500To record owner’s equityCredit A. Cruz, Capital 42,935Debit A. Cruz, Withdrawals 6,000To record revenuesCredit Services Revenue 48,600To record expensesDebit Depreciation Expense—Equipment 2,000Debit Salaries Expense 28,334Debit Insurance Expense 2,041Debit Rent Expense 3,256Debit Supplies Expense 1,604Totals Debits = 98,035 Credits = 98,035The trial balance is equal, which means the journal entries are correct.
