Page 87 - Accounting Principles (A Business Perspective)

2. Recording business transactions

Dec 1 Truck (+A) 150 4 0 0 0 0
Cash (-A) 100 4 0 0 0 0
To record the purchase of four trucks.

1 Prepaid Insurance (+A) 108 2 4 0 0
Cash (-A) 100 2 4 0 0
Purchased truck insurance to cover a one-year period.

1 Prepaid Rent (+A) 112 1 2 0 0
Cash (-A) 100 1 2 0 0
Paid three months' rent on a building.

4 Supplies on Hand (+A) 107 1 4 0 0
Accounts Payable (+L) 200 1 4 0 0
To record the purchase of training supplies for future use.

7 Cash (+A) 100 4 5 0 0
Unearned Service Fees (+L) 216 4 5 0 0
To record the receipt of cash from a customer in payment
for future training services.

15 Cash (+A) 100 5 0 0 0
Service Revenue (+SE) 400 5 0 0 0
To record the receipt of cash for performing training
services for a customer.

17 Accounts Payable (-L) 200 1 4 0 0
Cash (-A) 100 1 4 0 0
Paid the account payable arising from the purchase of
supplies on December 4.

88