Accounting

Question

Transactions for the Hartman Company for the month of November are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations.
1. Stockholders invested an additional $40,000 cash in the business
2.Purchased land costing $18000 for cash
3. Purchased equipment costing $45000 for $4500 cash and the remainder on credit
4. Purchased supplies on account for $800
5. Paid 3000 for a one year insurance policy
6. Received $2000 cash for service performed
7. Received $5000 for services previously performed on account
8. Paid wages to employees for $2500
9 Paid dividends to stockholders of $400

Answer 1

1. Debit cash 40000, credit shareholDee's equity 40000.

2. Debit land 18000, Credit cash 18000

3. Debit equipment 45000, Credit cash 4500, Credit the accounts payable 40500.

4. Debit supplies 800, Credit accounts payable 800

5.  Debit prepaid insurance 3000, Credit cash 3000

6.  Debit  cash 2000, Credit revenue 2000.

7.  Debit cash 5000, Credit accounts receivable 5000.

8. Debit wage expenses 2500,Credit cash 2500

9.  Debit retained earning 400,Credit cash 400