JOURNAL ENTRIES Jean Akins opened a consulting business. J
Question and Solution
JOURNAL ENTRIES Jean Akins opened a consulting business. Journalize the following transactions that occurred during the month of January of the current year using the modified cash basis and a combination journal. Set up special columns for Consulting Fees (credit) and Wages Expense (debit). Jan. 1 Invested cash in the business, $10,000. 2 Paid office rent, $500. 3 Purchased office equipment on account from Business Machines, Inc., $1,500. 5 Received cash for services rendered, $750. 8 Paid telephone bill, $65. 10 Paid for a magazine subscription (miscellaneous expense), $15. 11 Purchased office supplies on account from Leo’s Office Supplies, $300. 15 Paid for one-year liability insurance policy, $150. 18 Paid part-time help, $500. 21 Received cash for services rendered, $350. 25 Paid electricity bill, $85. 27 Withdrew cash for personal use, $100. 29 Paid part-time help, $500.