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    Journalizing Transactions

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    Rose Angel Saremo
    Here are the key things to remember when journalizing transactions: - Debit the account that increased as a result of the transaction. This will go on the left side of the journal entry. - Credit the account that decreased as a result of the transaction. This will go on the right side of the journal entry. - For receipts (money received), cash or accounts receivable will be debited and an income or liability account will be credited. - For payments (money paid out), an expense or asset account will be debited and cash or accounts payable will be credited. - When recording purchases on account, the asset account is debited and the liability (accounts payable) is credited

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    Journalizing Transactions

    Uploaded by

    Rose Angel Saremo
    8 views2 pages
    Here are the key things to remember when journalizing transactions: - Debit the account that increased as a result of the transaction. This will go on the left side of the journal entry. - Credit the account that decreased as a result of the transaction. This will go on the right side of the journal entry. - For receipts (money received), cash or accounts receivable will be debited and an income or liability account will be credited. - For payments (money paid out), an expense or asset account will be debited and cash or accounts payable will be credited. - When recording purchases on account, the asset account is debited and the liability (accounts payable) is credited

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    Here are the key things to remember when journalizing transactions: - Debit the account that increased as a result of the transaction. This will go on the left side of the journal entry. - Credit the account that decreased as a result of the transaction. This will go on the right side of the journal entry. - For receipts (money received), cash or accounts receivable will be debited and an income or liability account will be credited. - For payments (money paid out), an expense or asset account will be debited and cash or accounts payable will be credited. - When recording purchases on account, the asset account is debited and the liability (accounts payable) is credited

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    8 views2 pages

    Journalizing Transactions

    Uploaded by

    Rose Angel Saremo
    Here are the key things to remember when journalizing transactions: - Debit the account that increased as a result of the transaction. This will go on the left side of the journal entry. - Credit the account that decreased as a result of the transaction. This will go on the right side of the journal entry. - For receipts (money received), cash or accounts receivable will be debited and an income or liability account will be credited. - For payments (money paid out), an expense or asset account will be debited and cash or accounts payable will be credited. - When recording purchases on account, the asset account is debited and the liability (accounts payable) is credited

    Copyright:

    © All Rights Reserved
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    of 2

    Problem #11

    Journalizing Transactions
    Joanne Java Review School entered into the following transactions during October 2022:
    Oct. 1 Java made additional investments of P50,000 in the business.
    2 Bought liability insurance for one year, P14,500.
    3 Received a bill for advertising from SouthMin News, P3,200.
    4 Paid rent for the month, P8,900.
    7 Received a bill for equipment repair from E. Hipolito, P2,880.
    10 Received and deposited tuition from students, P62,500.
    11 Received and paid the telephone bill, P2,300.
    15 Bought chairs from E. Awayan Furniture, P18,800, paying P8,800 in cash and the balance on
    account.
    18 Paid accounts to South Min News, P3,200.
    21 Java withdrew P8,000 for personal use.
    24 Received a bill for gas and oil from Mindanao Oil Corp., P1,800. 25 Received and deposited
    tuition from students, P61,400.
    27 Paid salaries of the office assistants, P12,000.
    28 Bought a photocopier on account from Dadiangas Office Machines, P7,500.
    29 Received P7,000 tuition from a student who had charged the tuition on account last month.
    30 Received and paid the water utilities bill, P3,600.
    31 Paid for flower arrangements for front office, P620.
    31 Java invested personal computer, with a fair market value of P12,300, in the business.
    Required:
    Prepare the journal entries for the October transactions. Use the following accounts: Cash;
    Accounts Receivable; Prepaid Insurance; Equipment; Furniture; Accounts Payable Java, Capital;
    Java, Withdrawals; School Fees; Salaries Expense; Rent Expense; Gas and Oil Expense;
    Advertising Expense; Repair Expense; Supplies Expense; Utilities Expense Telecommunications
    Expense and Miscellaneous Expense.
    I’m confused kung where ilagay ang accounts if sa debit ba or credit, ano po dapat tandaan kapag
    ilagay na sa journal? Why is it sa ibang journal entry gud ate/kuya kay yung cash (debit) ba kay
    nasa taas gud sya? tapos nasa baba yung account (credit) then minsan din nasa taas yung
    account (debit) then nasa baba ang cash (credit). Pa explain po thoroughly para sa non abm
    freshie like me.

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