Chapter 4
The Accounting Cycle: Journals and Ledgers
91
JournAl
Page 1
Date
Account Titles and Explanation
PR
Debit
Credit
2016
Jan 2 Cash
101
1,500
Service revenue
400
1,500
Completed work for client
Jan 3 rent expense
540
800
Cash
101
800
Paid rent for month of January
Jan 4 Prepaid Insurance
110
1,200
Cash
101
1,200
Prepaid annual insurance policy
Jan 5 Cash
101
5,000
Parish, Capital
300
5,000
Owner invested cash
Jan 7 equipment
120
2,300
Cash
101
2,300
Bought equipment
Jan 10 Accounts receivable
105
1,800
Service revenue
400
1,800
Completed work on account
Jan 16 Bank Loan
215
500
Cash
101
500
Paid bank loan principal
Jan 19 Cash
101
1,100
unearned revenue
210
1,100
Received customer deposit
Jan 20 Telephone expense
550
250
Accounts Payable
200
250
Received telephone bill
Jan 30 Parish, Drawings
310
2,000
Cash
101
2,000
Owner took cash for personal use
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FIgure 4.12
