Question - The following accounts appear in the ledger of Hayley's Hairdressing Supplies and Education: Cash at Bank; Accounts Receivable; Hairdressing Equipment; Accounts Payable; H. Horton Drawings; Lesson Revenue; Salaries Expense; Capital and Advertising Expense.
Required - Prepare the general journal entries to record the transactions that occurred during December (ignore GST).
Dec. 1 Purchased hairdressing equipment for $57,000. Paid $5,000 deposit and agreed to pay the balance in 60 days.
3 Hayley withdrew $1,400 from the business to buy herself a new fridge.
8 Paid salaries of $7,200.
14 Paid $600 for advertisements in the local newspaper.
19 Received $830 from customers to reduce the balance in their accounts.
23 Paid $2,400 to creditors for supplies that had been purchased on credit.
27 Hayley received an unexpected inheritance of $85,000 and decided to add it to the business to buy new fittings for the head office in the new year.
30 Earned $57,600 in lesson revenue during the month. Of these, 80% of the fees were collected in cash and the remaining 20% will be paid within a month.