Journal-entries-exercises-with-answers ⚡ Fully Tested

: Collected $1,000 from the customer billed in Transaction #5.

: The business paid $500 in cash dividends to stockholders. Solutions & Explanations

: The company buys office equipment for $5,000 on credit. Expense Payment : Paid $1,200 for the current month's rent. journal-entries-exercises-with-answers

: Paid $2,000 toward the equipment purchased in Transaction #2.

: Performed services for $2,500 and billed the customer (on account). : Collected $1,000 from the customer billed in

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

Prepare the journal entries for the following business transactions: : Collected $1

: Performed services and received $3,000 cash immediately.