Gladys Yuan is a research analyst who operates under the business title Yuan Research. During April 2017, the company engaged in the following transactions:
Apr. 1 Yuan deposited $40,000 cash in the business bank account. The business gave Yuan owner's equity in the business.
5 Paid April's rent on a shared office space with cash, $400.
10 Purchased supplies on account, $600.
19 Paid $100 on account for supplies purchased on April 10.
21 Paid $25,000 cash to purchase land for a future office location.
22 Borrowed $15,000 from the bank for business use. Yuan signed a note payable to the bank in the name of the business.
30 Paid cash for employee salaries of $3,500 and utilities of $350.
30 Revenues earned during the month included $1,300 cash and $2,400 on account.
30 Yuan withdrew $1,200 cash from the business for personal use.
Yuan Research uses the following accounts: Cash; Accounts Receivable; Supplies; Land; Accounts Payable; Notes Payable; G. Yuan, Capital; G. Yuan, Withdrawals; Service Revenue; Office Rent Expense; Salaries Expense; Utilities Expense.
Required
1. Prepare an analysis of each business transaction of Yuan Research, as shown for the April 1 transaction:
Apr. 1 The asset cash is increased. Increases in assets are recorded by debits; therefore, debit Cash. The owner's equity is increased. Increases in owner's equity are recorded by credits; therefore, credit G. Yuan, Capital.
2. Record each transaction in the journal with an explanation, using the dates and account titles given.