TYPICAL ENTRIES FOR STUDENTS TO FAMILIARIZE DEBIT/CREDIT RULES DEBIT (Dr) An account CREDIT (Cr) An account JOURNALIZE/JOURNAL ENTRY 1 Invested €15,000 cash in exchange for €15,000 of ordinary shares[.]
TYPICAL ENTRIES FOR STUDENTS TO FAMILIARIZE DEBIT/CREDIT RULES DEBIT (Dr) An account CREDIT (Cr) An account JOURNALIZE/JOURNAL ENTRY: Invested €15,000 cash in exchange for €15,000 of ordinary shares Purchases computer equipment for €7,000 cash Purchases for €1,600 headsets and other accessories expected to last several months, this amount is on credit/ON ACCOUNT Receives €1,200 cash from customers for app development services it has performed Receives a bill for €250 from the Programming News for advertising on its website but postpones payment until a later date Provides €3,500 of services The company receives cash of €1,500 from customers, and it bills the balance of €2,000 on account Pays the following expenses in cash for September: office rent €600, salaries and wages of employees €900, and utilities €200 Pays its €250 Programming News bill in cash The company previously (in Transaction 5) recorded the bill as an increase in Accounts Payable Receives €600 in cash from customers who had been billed for services (in Transaction 6) 10 The corporation pays a dividend of €1,300 in cash to Ray and Barbara Neal - the shareholders 11 An amount of $36,000 was paid as advance rent for three months 12 Paid $60,000 cash on the purchase of equipment costing $80,000 The remaining amount was recognized as a one year note payable with interest rate of 9% 13 Miscellaneous expenses paid during the month totaled $3,470 14 Shareholders buy company’s stocks by $3,000 cash 15 Declared cash dividend payable by $300