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18 June, 09:05

Show a detailed journalizing of the following transactions:

Galle Inc. entered into the following transactions during January;

Jan 1 - Borrowed $250,000 from First Street Bank by signing a note payable.

Jan 4 - Purchased $25,000 of equipment for cash.

Jan 6 - Paid $2,250 to landlord for rent for January.

Jan 15 - Performed services for customers on account, $10,000.

Jan 25 - Collected $3,000 from customers for services performed in Transaction d.

Jan 30 - Paid salaries of $2,500 for the current month.

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  1. 18 June, 11:43
    0
    cash (+assets) 250,000 debit

    Note Payable (+Liabilities) 250,000 credit

    equipment (+Assets) 25,000 debit

    Cash (-Assets) 25,000 credit

    Rent expense (-Equity) 2,250 debit

    Cash (-Assets) 2,250 credit

    Account Receivable (+Assets) 10,000 debit

    Service Revenue (+Equity) 10,000 credit

    Cash ( + Assets) 3,000 debit

    Account Receivable (-Assets) 3,000 credit

    Salaries expense (-Equity) 2,500 debit

    Cash (-Assets) 2,500 credit

    Explanation:

    We will post after each account, which component of the accounting equation modifies.

    Also, we must remember than journal entries should have debit = credit
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