Chapter 2 Activity
For each transaction below, record the journal entry. Ignore dates and explanations.
1. A company sells $12,000 common stock in exchange for cash.
Dr. Cash 12,000
Cr. C/S 12,000
2. A company borrows $5,000 from a bank by issuing a note.
Dr. Cash 5,000
Cr. N/P 5,000
3. A company purchases equipment costing $1,900 with cash.
Dr. Equipment 1,900
Cr. Cash 1,900
4. A company provides $3,000 of services on account.
Dr. A/R 3,000
Cr. Service Revenue 3,000
5. A company purchases $500 supplies on account.
Dr. Supplies 500
Cr. A/P 500
6. A company makes a $100 payment on account.
Dr. A/P 100
Cr. Cash 100
7. A company pays $600 for rent.
Dr. Rent Expense 600
Cr. Cash 600
8. A company provides $2,000 of services for cash.
Dr. Cash 2000
Cr. Service revenue 2000
9. A company collects $1,000 on account.
Dr. Cash 1000
Cr. A/R 1000
10. A company pays a $200 dividend.
Dr. Dividends 200
Cr. Cash 200
