: The company buys office equipment for $5,000 on credit. Expense Payment : Paid $1,200 for the current month's rent.
In accounting, journal entries are the first step in the accounting cycle , recording financial transactions using (left side) and credits (right side). The fundamental rule is that total debits must always equal total credits . Practice Exercises
: Collected $1,000 from the customer billed in Transaction #5.
: Performed services for $2,500 and billed the customer (on account).
Accounting Principles: Journal Entry T Account Practice Problem
Prepare the journal entries for the following business transactions:
: The owner invests $50,000 cash into the business. : The company buys office equipment for $5,000 on credit
: Performed services and received $3,000 cash immediately.
