To post these transactions to the general ledger, first identify the debit and credit for each transaction.
May 2
Cash ........................................ 92,500
Virgie Dal, Capital ....................... 92,500
Explanation: The owner's investment increases Cash (debit) and Owner's Capital (credit).
May 3
Office Equipment ....................... 36,800
Accounts Payable ......................... 36,800
Explanation: Equipment purchased on account increases Equipment and Accounts Payable.
May 4
Office Supplies .......................... 17,100
Accounts Payable ......................... 17,100
Explanation: Supplies purchased on account increase Supplies and Accounts Payable.
May 6
Accounts Receivable .................. 29,200
Service Revenue ........................... 29,200
Explanation: Services were performed but payment has not yet been received, so Accounts Receivable is debited.
May 7
Books/Reference Materials .......... 19,500
Cash ............................................. 19,500
Explanation: Books used in the accounting practice are an asset if they will provide benefits over multiple accounting periods.
May 8
Accounts Payable ....................... 4,100
Cash ............................................... 4,100
Explanation: Paying A Office Supply Company reduces both Accounts Payable and Cash.
May 10
Condominium/Office Property ..... 265,000
Cash ............................................... 38,000
Mortgage/Notes Payable ............ 227,000
The unpaid amount is:
265,000 - 38,000 = 227,000
Explanation: The property increases by $265,000. Cash decreases by the $38,000 down payment, and the remaining $227,000 is recorded as a liability.
Therefore, the transactions affect the general ledger accounts for Cash, Capital, Office Equipment, Office Supplies, Accounts Payable, Accounts Receivable, Service Revenue, Books/Reference Materials, Condominium/Office Property, and Mortgage/Notes Payable.
