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Journalize Transactions for Gagon's General Journal

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Journalizing Transactions

Record each of the following transactions in Gagon's general journal.

1. Issued capital stock for $75,000 cash.
2. Borrowed $35,000 from a bank. Signed a note to secure the debt.
3. Paid salaries and rent of $45,500 and $3,600, respectively.
4. Purchased inventory from a supplier on credit for $4,500.
5. Paid the supplier for the inventory purchased in (4) above.
6. Sold inventory that cost $850 for $1,350 on credit.
7. Collected $1,350 from customers on transaction (6) above.

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Solution Summary

The solution presents the general journal entries in good form, including descriptions for better understanding.

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Gagon
General Journal
Debit Credit
1 Cash 75,000
Capital Stock 75,000
To record the purchase of stock for cash

2 Cash 35,000
Note payable - bank 35,000
To record ...

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