Journalize the following transactions include dates and a...

Journalize the following transactions. Include dates and a brief explanation for each journal entry. July 1: Issued common stock for $13,000 July 5: Performed services on account for $8,000 July 9: Purchased office supplies on account for $600 July 10: Performed services for cash of $3,100 July 12: Received payment in full for services performed on account from July 5 July 24: Paid in full for office supplies purchased on July 9 July 25: Received and paid monthly electric bill of $450 July 30: Signed a note payable to purchase office furniture for $2,500 July 31: Paid monthly payroll of $3,100

Transcript

00:01 In this question, you've asked me to journalize nine different transactions.

00:04 Let's look at the first one, which takes place on july 1st.

00:08 Issued common stock for $1 ,000 ,000, sorry.

00:13 When we issue common stock, that means we are getting cash.

00:18 Someone is buying our stock and getting cash.

00:21 Cash increases with a debit.

00:24 We would also have to credit common stock, which is an equity account, to increase to show that we have more common stock out there.

00:33 The next transactions on july 5th.

00:36 Performed services on account.

00:39 Performed services means we would credit service revenue.

00:43 Remember, revenues increase with credits.

00:47 And that was for $8 ,000.

00:49 If the customer paid us and we got cash, we would debit cash, but the customer hasn't paid us, which means we debit accounts receivable, which we shorten to be ar quite often.

01:02 Accounts receivable means we are still waiting to receive this money and turn it into cash.

01:09 On july 9th, we said we purchased office supplies on account.

01:14 Remember, assets increase with debits.

01:17 So we would debit supplies to show that we have more supplies on our books now.

01:22 It says we bought it on account, which means we have to credit accounts payable to increase our liability to reflect that we, owe money for this transaction.

01:38 Next one is on july 10th.

01:41 Performed services for cash.

01:44 We would have service revenue increase with a credit.

01:49 And this time we did receive cash...

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