Effects of Accounting Equation
Paid creditors on account $2900
Dr. Accounts Payable 2900 Cr. Cash 2900
Paid creditors $400
Dr. Accounts Payable 400 Cr. Cash 400
Paid creditors on account 950
Dr. Accounts Payable 950 Cr. Cash 950
Fees earned on account totaled $1120 for second half of the month
Dr. Accounts Receivable 1120 Cr. Fees Earned 1120
Paid $900 on the $1800 debt owed from an earlier transaction
Dr. Accts Payable 900 Cr. Cash 900
Fees earned on account totaled $1750 for the first half of the month
Dr. Accts Receivable 1750 Cr. Fees Earned 1750
Paid $180 for a newspaper advertisement
Dr. Advertisement Expense Cr. Cash
Paid $900 advertising expense
Dr. Advertising Expense 900 Cr. Cash 900
Received cash in exchange for common stock $1350
Dr. Cash 1350 Cr. Common Stock 1350
Chris Clark deposited $25000 in a bank account in the name of NetSol in return for shares of stock
Dr. Cash 25000 Cr. Capital Stock 25000
Received cash from customers on account $27500
Dr. Cash 27500 Cr. Accts Receivable 27500
Received $2870 from fees earned for the second half of the month
Dr. Cash 2870 Cr. Fees Earned 2870
Received $3100 from fees earned for the first half of the month
Dr. Cash 3100 Cr. Fees Earned 3100
Received $33000 cash for providing delivery services
Dr. Cash 33000 Cr. Fees Earned 33000
NetSol agrees to rent land to a retailer for 3 months and receives $360 for three months rent
Dr. Cash 360 Cr. Unearned Rent 360
Received $650 from customers in payment of their accounts
Dr. Cash 650 Cr. Accts Receivable 650
Receive cash of $7500 from customers for services provided
Dr. Cash 7500 Cr. Fees Earned 7500
Paid $2000 to stockholders as dividends
Dr. Dividends 2000 Cr. Cash 2000
Paid cash dividends $2500
Dr. Dividends 2500 Cr. Cash 2500
Paid $20000 for the purchase of land as a future building site
Dr. Land 20000 Cr. Cash 20000
Purchased office equipment on account for $1800
Dr. Office Equipment 1800 Cr. Accounts Payable 1800
Paid a premium of $2400 for an insurance policy for a one-year period
Dr. Prepaid Insurance 2400 Cr. Cash 2400
Paid rent for one month of $800
Dr. Rent Expense 800 Cr. Cash 800
Purchased $1100 of supplies for cash
Dr. Supplies 1100 Cr. Cash 1100
Purchased supplies on account for 1350
Dr. Supplies 1350 Cr. Accounts Payable 1350
Paid 1450 for supplies
Dr. Supplies 1450 Cr. Cash 1450
determined that cost of supplies on hand was $550, $800 of supplies had been used up
Dr. Supplies Expense 800 Cr. Supplies 800
Determined that the cost of supplies on hand was $300 and $8600 of supplies had been used
Dr. Supplies Expense 8600 Cr. Supplies 8600
Paid $225 electric bill for the month
Dr. Utilities Expense 225 Cr. Cash 225
Paid $310 telephone bill for the month
Dr. Utilities Expense 310 Cr. Cash 310
NetSol incurred the following expenses: wages $2125, rent $800, utilities $450, and misc. $275
Dr. Wages Expense 2125 Dr. Rent Expense 800 Dr. Utilities Expense 450 Dr. Misc. Expense 275 Cr. Cash 3650
NetSol paid a receptionist and a part-time assistant $950 for two weeks' wages
Dr. Wages Expense 950 Cr. Cash $950
