general journal

nsactions & Addi Date Description of the Activity July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $2,500 July 5 Paid the premium on a 1-year insurance policy, $3,600 July 7 Purchased supplies on account from Neighbor Company, $700. July 10 Paid employee salaries, $2,800 July 14 Purchased equipment from Giles Company, $9,500. Paid $1,500 down and the balance was placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1. Note: Use accounts payable for the balance due. July 15 Received cash for bookkeeping services for the first half of July, $6,500 July 19 Made payment on account to Giles Company, $500. July 31 Received cash for bookkeeping services for the last half of July, $8,250 July 31 Declared and paid cash dividends of $450. Adjusting Entries One month's insurance has expired The remaining inventory of supplies is $300 The estimated depreciation on equipment is $125 The estimated income taxes are $2,700 ARU, Inc. - General Journal Account Name Posted Debit Credit 2020 Account Number Month-Day POST ADJUSTING ENTRIES BELOW POST CLOSING ENTRIES BELOW ARU, Inc. - General Journal Cash Account # 100 2020 Month-Day EXAMPLE Account # 100 2020 Month-Day Debit Balance Cash Debit Credit Balance Dr./Cr. Credit Balance Dr./Cr 1.Jul Beginning Balance 38.250.00 38,250.00 Dr 5.000.00 43,250.00 Dr 3-Jul 34,000.00 77,250.00 Dr 5-Jul 18,750.000 58,500.00 Dr Prepaid Insurance Debit Credit Balance Dr./Cr. Supplies Debit Credit Balance Dr./Cr. Account 105 2020 Month-Day Account 110 2020 Month-Day Account 150 2020 Month-Day Account # 155 2020 Month-Day Equipment Debit Credit Balance Dr./Cr. Accumulated Depreciation Debit Credit Balance Dr./Cr