The following journal entries were prepared by an employee of international marketing company who does not have an adequate knowledge of accounting. general journal page 3 date description post. ref. debit credit 2019 april 1 accounts payable 15,800 fees income 15,800 performed services on credit 2 cash 600 telephone expense 600 paid for march telephone service, check 1917 3 office equipment 8,200 office supplies 900 cash 9,500 purchased file cabinet and office supplies, check 1918 (assume that office equipment and office supplies were recorded at the correct values.) required: examine the above journal entries carefully and prepare the correcting journal entries. analyze: after the correct journal entries have been posted, what effect do the corrections have on the company’s reported assets?

accounts receivable 15,800 (D)

accounts payable 15,800 (C)

telephone expense 1,200 (D)

cash 1,200 (C)

9,500 cash (D)

equipment 8,200 (C)

supplies 900 (C)

to eliminate a wrong post

supplies 900 (D)

equipment 8,200 (D)

9,500 cash (C)

to record the correct transaction

AR 15,800

Cash Decrease by 1,000

Recording Transactions in a Journal (Journaling) - Business transactions that occur on each account will be recorded in the general ledger in accordance with the group of accounts. For example, transactions related to cash will be recorded in the cash ledger, accounts receivable transactions will be recorded in the accounts receivable ledger and so on.

In practice, the recording of business transactions is not directly recorded in the ledger but must be recorded in a journal (journalizing) first so as not to cause errors in the recording or the next accounting cycle.

In accounting, a journal is a tool used to record business transactions that are carried out chronologically by showing accounts/debits and credits and their amounts.

The journal will record the transaction and determine the opposite of the transaction so that there is a balance, for example, if there is a sale in cash, the Cash will be debited and the Sales will be credited. In essence, the amount of debt must be the same as the amount of credit.

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Journaling  

Business Transaction  

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Grade: College

Subject: Business

Keyword: journal, transaction, receivable

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know