R1: Record journal entries for the following transactions (you may need the account names in R2)

1) On 12/31/2015, you started your own textbook business by investing $5,000 of your own money.

Account name

$amount

Dr:

Cr:

2) You also borrowed $10,000 from your best friend David. You promised to give him 8% annual interest at the end of the year and pay back the full amount in 5 years.

Account name

$amount

Dr:

Cr:

3) on 2/1/2016 you purchased 100 textbooks ($40 each) with cash; another 20 textbooks ($40 each) on account.

Account name

$amount

Dr:

Cr:

Dr:

Cr:

4) On 2/15/2016, you sold 50 textbooks for $65 each for cash; another 10 textbooks (also $65 each) on credit. Assuming that you use a perpetual system to account for inventory.

Dr:

Cr:

Dr:

Cr:

Dr:

Hint: you need to use the account COGS here.

Cr:

5) On 3/31/2016, you received utility bills for $450 but you didnt pay.

Dr:

Cr:

6) On 3/31/2016, you withdraw $1,000 from the business for personal use.

Dr:

Cr: