00:01
In this example, you've asked to record journal entries for the following transactions.
00:06
So i'll do them one at a time.
00:09
A, earned $7 ,000 of fees the customer will pay later.
00:15
This would include a debit to accounts receivable since we are waiting to receive the money from a customer, but a credit to sales revenue because we have performed and earned the fees here.
00:27
Next, b.
00:29
P.
00:30
Purchased equipment for $45 ,000.
00:32
Paying $20 ,000 in cash and the remainder on credit.
00:38
We would debit equipment for the full $45 ,000 to show that we've put all of this equipment on our books.
00:45
Now we have to talk about how we paid for it.
00:48
You would credit cash for $20 ,000, but also credit accounts payable for $25 ,000 because my liability is going up here.
00:58
I still owe the remainder.
01:02
Paid $3 ,000, $3 ,000, $4 ,000.
01:05
For rent in january.
01:07
You would have a debit to rent expense for $3 ,000 and a credit to cash for $3 ,000 to show that we've incurred this expense and paid it out.
01:20
Purchase $2 ,500 worth of supplies on account.
01:25
Well, what we got was supplies, and supplies increases with a debit.
01:31
But since i haven't paid it yet, i put it on account, that means i need to credit accounts pay to increase my liability to increase the amount that i owe here.
01:42
Next, we have someone invest in the company.
01:47
When someone invests in the company, what we get is cash...