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Recording Transaction in the General Journal for Classy Creations Company

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Selected Accounts from the general ledger of Classy Creations Company follow.

Prepare general journal entries that would be made to record the following transactions. Be sure to include dates and descriptions in their entries.

101 Cash; 111 Accounts receivable; 121 supplies; 131 equipment; 141 automobile; 202 accounts payable; 301 Marilyn James, capital; 302 Marilyn James, drawing; 401 Fees Income; 511 Rent expense; 514 Salaries expense; 517 Telephone expense

September 1 Marilyn James invested $62,000 in cash to start the firm.
4 Purchased office equipment for $8,500 on credit from Den,
Inc.; received invoice 9823, payable in 30 days.
16 Purchased an automobile that will be used to visit clients; issued Check 1001 for $22,500 in full payment.
20 Purchased supplies for $420; paid immediately with check 1002.
23 Returned damaged supplies for a cash refund of $120.
30 Issued chech 1003 for $5,600 to Den, Inc., as payment on account for Incoice 9823.
30 Withdrew $2,000 in cash for personal expenses.
30 Issued check 14 for $1,200 to pay the rent for October.
30 Performed services for $1,700 in ash.
30 Paid $207 for monthly telephone bill, Check 1005.

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Solution Preview

Solution to your problem is provided in a separate excel file attached herewith. It contains datewise general journal entries giving full reference of invoice and check numbers and other details using appropriate account titles.

General Journal -
Date Account titles Debit Credit
1-Sep Cash 62000
Marilyan James ...

Solution Summary

In good form, the solution presents the general journal entries for Classy Creations Company for September in Excel.