General Journal

Date Description P/R Debit Credit

2020
January 2 Cash 101 500,000
Winston, Capital 301 500,000
Winston Invested Cash in the business.

4 Taxes and Licenses 501 550

Cash 101 550
Paid municipal taxes and licenses.

7 Supplies 103 6,000

Cash 101 6,000
Bought supplies cash basis.

8 Furniture and Fixtures 104 12,500

Cash 101 1,250
Accounts Payable 201 11,250
Purchase furnitures and fixtures.

9 Prepaid Rent 106 45,000

Cash 101 45,000
Paid rent in advance for 3 months.

10 Cash 101 18,000

Service Revenue 401 18,000
Receipts for the week.

15 Account Receivable 102 6,000

Service Revenue 401 6,000
Billed a customer for the services rendered.

16 Accounts Payable 201 11,250

Cash 101 11,250
Paid Rhea Trading Company in full.

18 Salaries Expense 502 46,000

Cash 101 46,000
Paid the salaries of employees.

20 Equipment 105 14,000

Accounts Payable 201 14,000
Purchased equipment on account.
25 Miscellaneous Expense 507 2,400
Cash 101 2,400
Paid miscellaneous expense.

27 M. Winston, Drawing 302 7,000

Cash 101 7,000
Winston withdrew cash for personal use.

29 Utilities Expense 503 12,600

Cash 101 12,600
Paid light telephone and water for the month.

31 Salaries Expense 502 38,000

Cash 101 38,000
Paid salaries for the second half of the month.
 T-Account
Cash 101 Service Revenue (401)
Debit Credit Debit Credit
2020 2020 2020
January January January
2 500,000 4 550 10 18,000
10 18,000 7 6000 15 6,000
8 1,250 TOTAL 24,000
9 45,000 24,000
16 11,250
18 46,000
25 2,400
27 7,000
29 12,600
31 38,000
TOTAL 518,000 TOTAL 170050
347,950

Accounts Receivable 102 Taxes and Licenses (501)

Debit Credit Debit Credit
2020 2020
January January
15 6,000 4 550

Supplies 103 Salaries Expense (502)

Debit Credit Debit Credit
2020 2020
January January
7 6,000 18 46,000
31 38,000
Furniture and Fixtures 104 TOTAL 84,000
Debit Credit 84,000
2020
January
8 12,500

Equipment 105 Utilities Expense (503)

Debit Credit Debit Credit
2020 2020
January January
20 14,000 29 12,600
 Prepaid Rent (106) Miscellaneous Expense (507)
Debit Credit Debit Credit
2020 2020
January January
9 45,000 25 2,400

Accounts Payable (201)

Debit Credit
2020 2020
January January
16 11,250 8 11,250
20 14,000
TOTAL 11,250 TOTAL 25,250
14,000

Winston, Capital (301)

Debit Credit
2020
January
2 500,000

Winston, Drawing (302)

Debit Credit
2020
January
27 7,000
Cash 347,950 Service Rev. 24,000
A/R 6,000 Capital 500,000
Supplies 6,000 A/P 14,000
F&F 12,500
Equipment 14,000
Prepaid Rent 45,000

Drawing 7,000

Taxes &
Licen. 550
Salaries 84,000
Utility 12,600
Misc. 2,400
538,000 538,000