I need to know if the following questions are debit or credit: May 1 Invested $2
ID: 2698272 • Letter: I
Question
I need to know if the following questions are debit or credit:
May 1
Invested $20,000 cash in the golf course business.
May 3
Purchased Hampstead Golf Land for $15,000 cash. The price includes land $12,000, shed $2,000, and equipment $1,000.
May 5
Paid advertising expenses of $700
May 6
Paid cash $600 for a one-year insurance policy.
May 10
Purchased golf discs and other equipment for $1,050 from Discs Are Us payable in 30 days.
May 18
Received $1,100 in cash for golf fees earned (service revenue).
May 19
Sold 150 coupon books for $10 each. Each book contains four coupons that enable the holder to play one round of disc golf.
May 25
Withdrew $800 cash for personal use.
May 30
Pay $250 as salaries for part-time employees.
Thank you
May 1
Invested $20,000 cash in the golf course business.
May 3
Purchased Hampstead Golf Land for $15,000 cash. The price includes land $12,000, shed $2,000, and equipment $1,000.
May 5
Paid advertising expenses of $700
May 6
Paid cash $600 for a one-year insurance policy.
May 10
Purchased golf discs and other equipment for $1,050 from Discs Are Us payable in 30 days.
May 18
Received $1,100 in cash for golf fees earned (service revenue).
May 19
Sold 150 coupon books for $10 each. Each book contains four coupons that enable the holder to play one round of disc golf.
May 25
Withdrew $800 cash for personal use.
May 30
Pay $250 as salaries for part-time employees.
Thank you
Explanation / Answer
Following are some examples of translations and Journal Entries, its analysis is done on the basis of rules of double entry system: 1. Cash brought in by proprietor as capital Rs. 30000 a) What comes in business will be debited Cash has come in business; cash account will be debited in journal entry. b) Who is giver will be credited Proprietor is giver of cash to business but he has business motive and he gives the money to business as capital. Journal Entry Cash Account Debit 30, 000 Proprietor