Journal Entries
Date Account title and explanation Debit Credit
1-Jul The owners of Careful CPA's invested $20,000 cash, computers worth $2,500 and a printer worth $500 in exchange for common stock.
| 1-Jul | The firm borrowed $50,000 from the bank on a 2 year 12% loan |
| 2-Jul | The firm paid $12,000 for 6 months of rent at their office building |
| 2-Jul | The firm spent $9,900 on a 3 year renter's insurance policy |
| 3-Jul | The firm provided $5,000 of services for clients and will receive payment within 15 days |
| 7-Jul | The firm purchased $600 worth of supplies with cash |
| 8-Jul | The firm hired a videographer to make a commercial and received a bill for $560. |
| 10-Jul | The firm completed $2,550 of services for clients and was paid in cash |
| 15-Jul | The firm owes employees $700 in salaries to be paid in one week |
| 18-Jul | The firm collected $3,000 for services performed on July 3 |
| 20-Jul | The firm spent $460 on an advertisement in the local paper |
| 23-Jul | The firm paid their employees $700 in salaries accrued on July 15. |
| 30-Jul | The firm used $350 worth of supplies this month |
| 30-Jul | The firm recorded $60 worth of depreciation for Office Equipment |
| 30-Jul | Record interest payable on the loan issued on July 1. |
| 30-Jul | Record rent expense |
| 30-Jul | Adjust Prepaid Insurance |
| 30-Jul | The firm recorded $100 for Computer Depreciation |
| 30-Jul | Record accrued salaries of $1,500 |
| 30-Jul | The firm estimates that their utility expense for the month is $350. |
