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How to Journalize Basic Accounting Transactions

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Show how the transactions in E2-3 are journalized.

The selected transactions for D. Reyes, Inc. an interior decorating firm, in its first month of business, are as follows.

2 Invested $10,000 cash in the business in exchange for common stock.
3 Purchased used car for $4,000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1,800 for services performed.
16 Paid $200 cash for advertising.
20 Received $700 cash from customers billed on January 11.
23 Paid creditor $300 cash on balance owed.
28 Declared and paid a $1,000 cash dividend.

Journalize the transactions using journal page J1. (You may omit explanations.)

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Solution Preview

The attached MS Word document will show how the transactions in E2-3 are journalized. This exercise uses information completed in Exercise E2-2 ...

Solution Summary

This solution is comprised of an accounting exercise that deals with journalizing basic types of transactions. The exercise shown here is taken from Financial Accounting, 6th ed., Wiley Publishing, and is a continuation of an exercise in which the transactions were previously analyzed; however, the detail step-by-step explanation of these complicated topics provides students with a clear understanding of the concepts. Thank you for using BrainMass.com. Have a great day!