Chapter 7 Exercise 1

Journalize the transactions below; you need to do journalizing separately for the head office and the branch

1- Head Office purchased an office equipment amounting $25,000

2- Lefke Branch purchased furniture amounting $30,000

3- Nicosia Head Office sent stock of stamps to Lefke Branch, amounting $2,000

4- Henry has a deposit account at Nicosia Head Office of the West Bank. While Henry was at Lefke, he deposited $950 to his account at the Lefke Branch.

5- Jumbo LTD has a deposit account at Lefke Branch of the Bank. One of the accounts receivable customer of Jumbo Ltd. invested $15,000 cash to company`s bank account at Nicosia Head Office

6- Main Head Office of the Bank paid monthly salary of the employees. Total salaries were amounting to $40,000

7- Main Head Office of the Bank paid monthly cleaning fee of the Lefke Branch building. Cleaning services were amounting to $7,000

8- Lefke Branch, received an invoice amounting $1,200 from ICE Company for the repairing services provided. Corresponding amount will be paid on following month

9- Joseph, who is a deposit customer of the Bank`s main head office, withdrew $6,500 from Lefke Branch.

10- Carolina has a deposit account at Lefke Branch of the Bank. Carolina, withdrew $1,200 cash from Nicosia Head Office

11- Nicole, has a Loan Account at West Bank`s main head office. She borrowed $12,000 cash to be paid in 3 instalments and signed a promissory note. She paid first instalment of the loan to the Lefke Branch

12- Jessica borrowed $72,000 cash from Lefke Branch of the Bank to be paid in 12 installments in one year. After paying half of the loan, she requested to pay the rest of the amount fully in one instalment to the Head Office Nicosia.