Transaction #1: On January 1, 2018 Mr.

Alexander Bell started Bell Electronic Repair Services by

investing $15,000.
Cash 10,000.00
Mr. Gray, Capital 10,000.00

Transaction #2: On January 5, Bell Electronic Repair Services paid registration and licensing fees
for the business, $250.
Taxes and Licenses Expense 250.00
Cash 250.00

Transaction #3: On January 6, the company acquired tables, chairs, shelves, and other fixtures
for a total of $2,500. The entire amount was paid in cash.
Furniture and Fixtures 2,500.00
Cash 2,500.00

Transaction #4: On January 8, the company acquired service equipment for $18,500. The
company paid a 50% down payment and the balance will be paid after 60 days.
Service Equipment 18,500.00
Cash 9,250.00
Accounts Payable 9,250.00

Transaction #5: Also on January 9, Bell Electronic Repair Services purchased supplies on account
amounting to $1,400.
Supplies 1,400.00
Accounts Payable 1,400.00

Transaction #6: On January 11, the company received $2,600 for services rendered.
Cash 2,600.00
Service Revenue 2,600.00

Transaction #7: On January 13, the company rendered services on account, $5,555.00. As per
agreement with the customer, the amount is to be collected after 10 days. *apply the accrual
basis of accounting.
Accounts Receivable 5,555.00
Service Revenue 5,555.00

Transaction #8: On January 15, Mr. Bell invested an additional $4,500.00 into the business.
Cash 4,500.00
Mr. Bell, Capital 4,500.00

Transaction #9: Rendered services to a big corporation on January 17. As per agreement, the
$5,400 amount due will be collected after 30 days.
Accounts Receivable 5,400.00
Service Revenue 5,400.00
Transaction #10: On January 18, the company collected from the customer in transaction #7.
Cash 5,555.00
Accounts Receivable 5,555.00

Transaction #11: On January 20, the company paid some of its liability in transaction #5 by
issuing a check. The company paid $700 of the $1,400 payable.
Accounts Payable 700.00
Cash 700.00

Transaction #12: On January 22, the owner withdrew cash due to an emergency need. Mr. Bell
withdrew $5,000 from the company.
Mr. Bell, Drawings 5,000.00
Cash 5,000.00

Transaction # 13: On January 23, the company paid rent for January, $ 1,500.
Rent Expense 1,500.00
Cash 1,500.00

Transaction #14: On January 28, the company acquired a $15,000 short-term bank loan; the
entire amount plus an 8% interest is payable after 1 year.
Cash 15,000.00
Loans Payable 15,000.00

Transaction #15: On January 30, the company paid salaries to its employees, $4,700.
Salaries Expense 4,700.00
Cash 4,700.00