Answer in Accounting for Denisse Bisuña #174143
identify and name the parts of the general journal below. journalize the following selected march 2021 transactions using the general journal below.
March 1 The owner, J Simon, invests P100,000 cash in his barber shop
Analysis: Increase in Asset (Dr) Cash P100,000
Increase in Equity (Cr) J Simon, Capital P100,000
March 3 The business buys a lot for P2M paying cash of P800,000 and the balance covered by promissory note.
Analysis: Increase in Asset (Dr) Land P2,000,000
Decrease in Asset (Cr) Cash P800,000
March 6 The owner, J Simon pays P7,500 accounts payable of the business from his personal savings.
Analysis: Decrease in liability (Dr) Accounts Payable P7,500
Increase in Equity (Cr) J Simon, Capital P7,500
Cash invested by the owner.
It increases cash since it is an asset and debited.
It increases the Equity of the person since it is a liability and credited.
The business purchases a plot by cash and promissory note.
It increases Land since it is an asset and debited.
It decreases Cash since it is an asset and credit.
The difference is (2,000,000 – 800,000 =) 1,200,000 would be in the Promissory note account, which is a liability and credited.
Payment of business account by the owner directly.
It decreases the liability, Accounts Payable; therefore, debited.
It increases the Equity of J.S. therefore, it is credited.