Chapter 2, Recording Process, pages 59 – 60
General Journal
transactions (activities) are recorded, entered General Journal
Date Debit Credit
1/1/2013 Cash 20,000$
Owner’s Capital 20,000
(owner’s investment of cash in a business)
1/2 Equipment 4,800$
Accounts Payable 4,800
(purchase of equipment on account)
Chapter 2, Recording Process, pages 73 – 74
Snow Company
Trial Balance, December 31, 2012
Account Title Debit Credit
Cash 7,000$
Accounts Receivable 4,000
PrePaid Insurance 6,000
Equipment 88,000
Notes Payable 19,000
Accounts Payable 22,000
Salaries & Wages Payable 2,000
Owner’s Capital 20,000
Owner’s Drawings 8,000
Service Revenue 95,000
Salaries & Wages Expense 42,000
Insurance Expense 3,000
158,000$ 158,000$
General Journal
Account Titles & Explantion
Trial Balance
Chapter 2, Recording Process, page 69
General Journal and General Ledger
transactions (activities) are recorded, entered General Journal
post entries to General Ledger
Date Debit Credit
3/4/2013 Cash 2,280$
Service Revenue 2,280
3/15 Salaries & Wages Expense 400$
Cash 400
3/19 Utilities Expense 92$
Cash 92
post entries to General Ledger post entries to General Ledger
3/1/2013 600$ 400 3/15 Date Debit(+) Credit(-) Balance
3/4 2,280 92 3/19 3/1/2013 600$ 600$
3/31/2013 2,388$ 3/4 2,280 2,880
balance 3/15 400 2,480
3/19 92 2,388
3/31/2013 2,388$
General Journal
Account Titles & Explantion
Cash
Cash
Chapter 2, Recording Process, pages 63 – 72 (pg 70)
The purpose of transaction analysis is to identify the type of account
involved, then to determine whether to make a debit or credit to the account
Date Debit Credit
1 10/1/2013 Cash 10,000$
Owner’s Capital 10,000
(owner’s investment of cash in a business)
2 10/1 Equipment 5,000$
Notes Payable 5,000
(purchase of equipment on account)
(issued 3 month, 12% note for equip)
3 10/2 Cash 1,200$
UnEarned Service Revenue 1,200
(cash received for future service)
4 10/3 Rent Expense 900$
Cash 900
(paid october rent)
5 10/4 PrePaid Insurance 600$
Cash 600
(paid one year policy, effective October 1)
6 10/5 Supplies 2,500$
Accounts Payable 2,500
(purchased supplies on account)
7 10/20 Owner’s Drawings 500$
Cash 500
(withdrew cash for personal use)
8 10/26 Salaries &Wages Expense 4,000$
Cash 4,000
(paid salaries to date)
9 10/31 Cash 10,000$
Service Revenue 10,000
(received cash for services provided)
General Journal
Account Titles & Explantion
Chapter 2, Recording Process, pages 63 – 72 (pg 71)
Date Debit(+) Credit(-) Balance Date Debit(-) Credit(+) Balance
10/1/2013 10,000$ 10,000$ 10/2/2013 1,200$ 1,200$
10/2 1,200 11,200
10/3 900 10,300
10/4 600 9,700
10/20 500 9,200
10/26 4,000 5,200
10/31 10,000 15,200$
Date Debit(+) Credit(-) Balance Date Debit(-) Credit(+) Balance
10/5/2013 2,500$ 2,500$ 10/1/2013 10,000$ 10,000$
Date Debit(+) Credit(-) Balance Date Debit(+) Credit(-) Balance
10/4/2013 600$ 600$ 10/20/2013 500$ 500$
Date Debit(+) Credit(-) Balance Date Debit(-) Credit(+) Balance
10/1/2013 5,000$ 5,000$ 10/31/2013 10,000$ 10,000$
Date Debit(-) Credit(+) Balance Date Debit(+) Credit(-) Balance
10/1/2013 5,000$ 5,000$ 10/26/2013 4,000$ 4,000$
Date Debit(-) Credit(+) Balance Date Debit(+) Credit(-) Balance
10/5/2013 2,500$ 2,500$ 10/3/2013 900$ 900$
General Ledger
Cash
UnEarn Ser Rev
Supplies
Owner’s Capital
Service Revenues
-Owner’s Drawings
Equipment
Notes Payable
Accounts Payable
-Sal & Wages Exp
-Rent Exp
PrePaid Insur
Chapter 2, Recording Process, pages 63 – 72 (pg 72)
Pioneer Company
Trial Balance, October 31, 2012
Account Title Debit Credit
Cash 15,200$
Supplies 2,500
PrePaid Insurance 600
Equipment 5,000
Notes Payable 5,000
Accounts Payable 2,500
UnEarned Service Revenue 1,200
Owner’s Capital 10,000
Owner’s Drawings 500
Service Revenue 10,000
Salaries & Wages Expense 4,000
Rent Expense 900
28,700$ 28,700$
Trial Balance
Chapter 2, Recording Process, pages 63 – 72 (pg 70)
The purpose of transaction analysis is to identify the type of account
involved, then to determine whether to make a debit or credit to the account
Date Debit Credit
1 10/1/2013 Cash 10,000$
Owner’s Capital 10,000
(owner’s investment of cash in a business)
2 10/1 Equipment 5,000$
Notes Payable 5,000
(purchase of equipment on account)
(issued 3 month, 12% note for equip)
3 10/2 Cash 1,200$
UnEarned Service Revenue 1,200
(cash received for future service)
4 10/3 Rent Expense 900$
Cash 900
(paid october rent)
5 10/4 PrePaid Insurance 600$
Cash 600
(paid one year policy, effective October 1)
6 10/5 Supplies 2,500$
Accounts Payable 2,500
(purchased supplies on account)
7 10/20 Owner’s Drawings 500$
Cash 500
(withdrew cash for personal use)
8 10/26 Salaries &Wages Expense 4,000$
Cash 4,000
(paid salaries to date)
9 10/31 Cash 10,000$
Service Revenue 10,000
(received cash for services provided)
General Journal
Account Titles & Explantion
Chapter 2, Recording Process, pages 63 – 72 (pg 71)
Date Debit(+) Credit(-) Balance Date Debit(-) Credit(+)
10/1/2013 10,000$ 10,000$ 10/2/2013 1,200$
10/2 1,200 11,200
10/3 900 10,300
10/4 600 9,700
10/20 500 9,200
10/26 4,000 5,200
10/31 10,000 15,200$
Date Debit(+) Credit(-) Balance Date Debit(-) Credit(+)
10/5/2013 2,500$ 2,500$ 10/1/2013 10,000$
Owner’s Capital
-Owner’s Drawings
General Ledger
Cash
UnEarn Ser Rev
Supplies
PrePaid Insur
Date Debit(+) Credit(-) Balance Date Debit(+) Credit(-)
Date Debit(+) Credit(-) Balance Date Debit(-) Credit(+)
10/1/2013 5,000$ 5,000$ 10/26/2013 4,000$
