Question

august transactions
aug. 1 mikaela mundt invested $2,000.00 of her own money in the business. receipt no. 1.
3 used business cash to purchase supplies costing $216.00. wrote check no. 1.
4 wrote check no. 2 for insurance, $245.00.
5 purchased supplies for $68.00 over the phone from southern supplies, promising to send the check next week. memo no. 1.
11 sent check no. 3 to southern supplies, $68.00.
12 sent a check for the electricity bill, $180.00. check no. 4.
15 wrote $800.00 check to ms. mundt as a withdrawal of equity for personal use. used check no. 5.
using the information provided for mundt services, journalize the transactions completed during august of the current year. remember to record appropriate source document numbers.
journal
date account title doc. no. post. ref. general debit credit sales credit cash debit credit

Explanation:

Step1: Record investment

Debit Cash $2000$ (increase in asset), Credit Owner's Equity $2000$ (increase in equity), Doc. No. 1.

DATE	ACCOUNT TITLE	DOC. NO	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	SALES CREDIT	CASH DEBIT	CASH CREDIT
Aug 1	Owner's Equity	1			2000

Step2: Record supplies purchase with cash

Debit Supplies $216$ (increase in asset), Credit Cash $216$ (decrease in asset), Doc. No. 1.

DATE	ACCOUNT TITLE	DOC. NO	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	SALES CREDIT	CASH DEBIT	CASH CREDIT
Aug 3	Cash	1			216

Step3: Record insurance payment

Debit Insurance Expense $245$ (increase in expense), Credit Cash $245$ (decrease in asset), Doc. No. 2.

DATE	ACCOUNT TITLE	DOC. NO	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	SALES CREDIT	CASH DEBIT	CASH CREDIT
Aug 4	Cash	2			245

Step4: Record supplies purchase on account

Debit Supplies $68$ (increase in asset), Credit Accounts Payable $68$ (increase in liability), Memo No. 1.

DATE	ACCOUNT TITLE	DOC. NO	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	SALES CREDIT	CASH DEBIT	CASH CREDIT
Aug 5	Accounts Payable	1			68

Step5: Record payment to supplier

Debit Accounts Payable $68$ (decrease in liability), Credit Cash $68$ (decrease in asset), Check No. 3.

DATE	ACCOUNT TITLE	DOC. NO	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	SALES CREDIT	CASH DEBIT	CASH CREDIT
Aug 11	Cash	3			68

Step6: Record electricity bill payment

Debit Utilities Expense $180$ (increase in expense), Credit Cash $180$ (decrease in asset), Check No. 4.

DATE	ACCOUNT TITLE	DOC. NO	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	SALES CREDIT	CASH DEBIT	CASH CREDIT
Aug 12	Cash	4			180

Step7: Record owner's withdrawal

Debit Owner's Withdrawals $800$ (decrease in equity), Credit Cash $800$ (decrease in asset), Check No. 5.

DATE	ACCOUNT TITLE	DOC. NO	POST. REF.	GENERAL DEBIT	GENERAL CREDIT	SALES CREDIT	CASH DEBIT	CASH CREDIT
Aug 15	Cash	5			800

Answer:

The journal entries are shown above in the step - by - step process with appropriate account titles, amounts, and source document numbers recorded in the journal table.