Part 3 John David uses the following accounts in his business: General Ledger: C
ID: 2344454 • Letter: P
Question
Part 3John David uses the following accounts in his business:
General Ledger: Cash at Bank, Accounts Receivable, Accounts Payable, Office Equipment, Sales Revenue, John David Capital, John David Withdrawals, Advertisement Expenses, Purchases Expense, and Salaries Expense.
Identify the two accounts affected by each of the following transactions, and indicate whether each account is debited or credited.
January 1 John David invested $50,000 in his business.
January 4 Billed a customer for goods supplied worth $7,000.
January 9 Issued a $10,000 check for inventory purchased.
January 12 Paid staff salaries totalling $5,000.
Explanation / Answer
1. Debit Cash; Credit John David, Capital 2. Debit Cash; Credit Sales 3. Debit Accounts Payable; Credit Cash (I think) 4. Debit ?; Credit Cash (There really should be a Salary Expense here