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Debit, Credit, and Journal Entries

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Woodcross LLC had the following events occur during the month of July.
1. Received $40,000 from investors for contributed capital
2. Borrowed $15,500 from bank
3. Paid $4,000 in rent
4. Made sale on account for $12,500
5. Made cash sales to customers totaling $29,700
6. Repaid part of bank loan for $6,000
7. Purchased new equipment for $5,000
8. Paid $13,000 for wages
9. Paid $1,900 for utilities

Prepare the nine journal entries. Each entry will have a debit and a credit entry. Indicate word Debit followed by thr account title(name); Credit followed by the account title(name).

Debit Cash xxx(amount)
Credit Contributed Capital (amount)

Use appropriate account title(names); there is no need to indent as ecollege may not retain the indent. Please include words debit and credit before the account title (name) and amount clearly.

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Solution Preview

This is how we would prepare the journal entries. The left (1st) entry is always the debit and the second (right) entry is the credit.

1. Cash 40,000 ...

Solution Summary

This solution provides the correct debit, credit, and journal entries based on the information provided. All necessary entries are given.