erilite Ltd Initial Journal Entries

a. January 1, Balances from 2021: Debit Capital (31) $1,237,000 (Opening Capital Balance) Credit Cash (11) $400,000 Credit Accounts Receivable (12) $250,000 Credit Supplies (14) $205,000 Credit Furniture and Equipment (18) $600,000 Credit Other Creditors (21) $218,000

b. January 2, Assets received from Dalton McDonald: Debit Cash (11) $200,000 Debit Accounts Receivable (12) $61,000 Debit Supplies (14) $90,000 Debit Furniture and Equipment (18) $400,000 Credit Capital (31) $751,000 (Reducing Capital)

c. February 1, Rent Expense: Debit Rent Expense (52) $450,000 Credit Prepaid Rent (15) $450,000

d. March 30, Prepaid Insurance: Debit Prepaid Insurance (16) $100,000 Credit Cash $100,000

1. Post journal entries to their respective T accounts.