Page 82 - Accounting Principles (A Business Perspective)

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Date Account Titles and Explanation Post. Debit Credit
Ref.
2010 Dec. 26 Cash (+A) 100 5 0 0
Accounts Receivable (-A) 103 5 0 0
Received $500 from a customer on accounts receivable

General Ledger Cash
(Dr.) Acct. No. 100 (Cr)
2010 2010
Dec. 1 Beg Bal. 50,000 Dec. 1 40,000
Dec. 7 4,500 Dec. 1 2,400
Dec. 15 5,000 Dec. 1 1,200
Dec. 26 500 Dec. 17 1,400
Accounts Receivable
(Dr.) Acct. N o. 103 (Cr.)
2010 2010
Dec. 20 5,700 Dec. 26 500
Effects of transaction
One asset, cash, increases (debited); and another asset, accounts receivable, decreases (credited) by USD 500.
Transaction 12: Dec. 28 Paid salaries of $3,600 to training personnel for the first four weeks of December.
(Payroll and other deductions are to be ignored since they have not yet been discussed.)
General Journal

Date Account Titles and Explanation Post. Debit Credit
Ref.
2010 Dec. 28 Salaries Expense (-SE) 507 3 6 0 0
Cash (-A) 100 3 6 0 0
Paid training personnel salaries for the first four weeks of
December.

General Ledger
Salaries Expense
(Dr.) Acct. No. 507 (Cr)
2010
Dec. 3,600
28
Cash
(Dr.) Acct. No. 100 (Cr.)
2010 2010
Dec. 50,000 Dec. 1 40,000
1
Dec. 4,500 Dec. 1 2,400
7
Dec. 5,000 Dec. 1 1,200
15
Dec. 500 Dec. 17 1,400
26
Dec. 28 3,600
Effects of transaction
An expense, salaries expense, increases (debited); and an asset, cash, decreases (credited) by USD 3,600.

Transaction 13: Dec. 29 Received and paid the utilities bill for December, $150.
General Journal
Date Account Titles and Explanation Post. Debit Credit
Ref.
2010 Dec. 29 Utilities Expense (-SE) 511 1 5 0
Cash (+A) 100 1 5 0

Accounting Principles: A Business Perspective 83 A Global Text