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Exercise Two

Savannah Company invested cash into the business, purchased equipment and supplies both with cash and on account, sold inventory to customers on account and received some cash payments from customers. They also paid creditors, withdrew cash for personal use, borrowed money from the bank, and paid expenses like salaries, rent, advertising and a computer. Maria Juarez invested cash into starting her dental business. She hired a secretary, paid rent and purchased supplies on account. She provided services and billed insurance companies. She received a cash advance and payment for services. She paid her secretary and her supplies account.

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Hassan Yassin
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483 views2 pages

Exercise Two

Savannah Company invested cash into the business, purchased equipment and supplies both with cash and on account, sold inventory to customers on account and received some cash payments from customers. They also paid creditors, withdrew cash for personal use, borrowed money from the bank, and paid expenses like salaries, rent, advertising and a computer. Maria Juarez invested cash into starting her dental business. She hired a secretary, paid rent and purchased supplies on account. She provided services and billed insurance companies. She received a cash advance and payment for services. She paid her secretary and her supplies account.

Uploaded by

Hassan Yassin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Exercise two

(1) The first month transactions of Savanah Company was the


following:
1- Invested $30,000 cash in business
2- Paid $500 cash for advertising
3- Purchased equipment for $7000 on cash
4- Sold $4000 inventory to customers on account
5- Purchased supplies on account for $700
6- Received $3200 cash from customers in transaction 4
7- Paid creditors $400 cash on balance owed
8- withdrew $1500 cash for personal use
9- borrowed $5000 from the bank by signing a note
10- paid $2000 for a computer
11- paid salaries of 600 for the employee
Instructions
Journalize the transactions

(2) Maria Juarez is a licensed dentist. During the first month of


the operation of her business, the following events and
transactions occurred.
Invested $40000 cash
Hired a secretary-receptionist at salary of $600 per week
payable monthly
Paid office rent for the month $1000
Purchased dental supplies on account from smile company
$4000
Provide dental service and billed insurance companies $5100
Received $1000 cash advance from Trudy Borke for an
implant
Received $2100 cash for service completed and delivered to
john Stanley.
Paid secretary-receptionist for the month $2400
Paid $1600 to smile company for account payable due
Instructions
Journalize the transactions

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