(10-20 min.

) E 2-18A

Journal
DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT

Apr. 1 Cash………………………………………… 18,200

…
Share 18,200
Capital……………………………..
Issued ordinary shares to owner.

2 Office 200
Supplies………………………………
Accounts 200
Payable………………………..
Purchased office supplies on
account.

4 Land………………………………………… 15,200
…
15,200
Cash………………………………………..
Paid cash for land.

6 Cash………………………………………… 3,300
…
Service 3,300
Revenue…………………………
Performed services for cash.

9 Accounts 100
Payable…………………………...
100
Cash………………………………………..
 Paid cash on account.

17 Accounts 2,100
Receivable……………………….
Service 2,100
Revenue…………………………
Performed service on account.

23 Cash………………………………………… 1,000
…
Accounts 1,000
Receivable……………………
Received cash on account.

30 Salary 1,200
Expense………………………………
Rent 600
Expense………………………………...
1,800
Cash………………………………………..
Paid cash expenses.
 (10 min.) S 2-12

1. Normal A. Record of transactions

D
balance
G 2. Payable B. Always an asset
A 3. Journal C. Left side of an account
B 4. Receivable D. Side of an account
where increases are
recorded
J 5. Owners’ E. Copying data from the
equity journal to the ledger
C 6. Debit F. A decrease in
shareholders’ equity
F 7. Expense G. Always a liability
8. Net income H. Revenues – Expenses
H
I 9. Ledger I. Collection of accounts
used in a business
E 10. Posting J. Assets – Liabilities