My text book does not explain how to enter transactions, but we are required to do so in this format: Cash + Accounts + Supplies + Equipment= Accounts + Owners'
Receivable Inventory Payable Equity
1. Owners invested 25,000 in cash to start the business. They received common stock.
2. The month's rent of 500.00 was prepaid in cash.
3. Equipment costing 8000.00 was bought on credit.
4. 500.00 was paid for office supplies.
5. Advertising costing 750.00 was paid for with cash.
6. Paid 3000.00 employee salaries in cash.
7. Earned travel commissions of 10,000.00 if which 2000.00 was received in cash.
8. Paid 5000.00 of the 8000.00 owed to the equipment supplier.
9. Used 100.00 of the office supplies
10.Charged 1000.00 of miscellaneous expenses on the corporate creidt card.