journalizing transactions exercises with answers pdf. Journalizing Accounting Entries. After studying Chapters 3 through 10, you will have covered the entire accounting cycle for a service business organized as a sole proprietorship. Debit Note informs the supplier that his account has been credited 27. If you want to droll books, lots of novels, tale, jokes, and more fictions collections are along with. credited another asset account for P 500. Evaluate each item and prepare the journal entries that would be needed for the initial recording and subsequent end-of-20X3 adjusting entry. The journal book must record every business transaction, which means entries need to be made. 170 CHAPTER 5 Chapter Objectives In Chapters 3 and 4, we completed these steps of the manual accounting cycle for Clark's Desktop Publishing Services: Step 1: Business transactions occurred and generated source documents. Tally Tutorial in Hindi | Step By Step Learning :: GST Exercises : 1 :: 1. To report the business transactions to the authorities. The purchase of a car on credit is an example of an accounting transaction. Define receivables and identify the different E7-12 Journalizing various receivable transactions. Question-01: What is the accounting equation? Answer: Every transaction has two sides. inancial management is based on proper use and interpretation of financial state-ments. Difficulty Rating: Intermediate Time limit: 20 minutes Question: Q: Mr Robert commenced business on. Answer: When transactions are recorded chronologically as debit and credit. Goods purchased from Ram ₹ 48,000 5. The campaign was to run from November, 20X7, through the end of April, 20X8. 100+ Tally Practical Questions & Answers Pdf Free Download. Accounting transactions exercises with answers pdf. The general journal is maintained essentially on the concept of double entry system of accounting, where each transaction affects at least two accounts. 3 A,B Requires students to journalize transactions and to understand the relationship between the income statement and the balance sheet. A Journal entry is the first step of the accounting or book-keeping process. Thesuggested file name is Exercise 1-2_Journal. cash personal use 5000 Mandatory: Record records in the journal for operations and place them in. 1, paid $50 for 5 m:mths of ads in the school newspaper. Analyze each transaction and event from source documents 2. Prepare a schedule of accounts receivable. 8 Types of Journals in MANUAL accounting: Journal Type. Posting is the step after accurately journalizing. problem 3 conner thomas started a new business, thomas gymnastics, and completed the following transactions during december: december 1 received $19,000 cash from conner as initial investment. Source Documents Identify and describe transactions and events entering the accounting process. Via Afrika Publishers » Accounting Grade 10 3 3 Accounting study tips General tips It is important that you do your homework every day - don't copy. Ledger is a book where all the transactions related to a particular account are collected at one. The periodic inventory system recognition of these example transactions and corresponding journal entries are shown in Appendix: Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System. Jan 1 Issued $100,000 in stock to owners in exchange for cash to start the business. disclose the complete effect of a transaction in one place. Transaction #1: On December 1, 2016, Mr. Donald Gray started Gray Electronic Repair Services by investing $10,000. Solution for Sample Exercise 4 for each transaction is built into the. PDF Accounting Cycle Exercises III. The right side of a t-account is a. The Payroll Entry window is the Payroll Journal. Journalise the following transactions in the books of Arun. Figure Out the Accounts Affected The very first thing you have to do when journalizing is an analysis of the transaction to figure out what accounts change and by how much. Journal Entries and Ledger Question and Answer. 1 Issued $15,000 of common stock to investors. The basic steps in the recording process are (a) analyze each transaction for its effects on the accounts, (b) enter the transaction information in a journal, and (c) transfer the journal information to the appropriate accounts in the ledger. Phast Mail Service purchased equipment for P 2,000. Cash is an asset for the business hence debit the increase in assets. Return Outward Books record goods returned by the customers 26. Paid rent for the month, $1,290. The answers to these questions are to be found continuously and (b) Journal : The transactions are recorded in Journal chronologically. PDF 2 Transaction Analysis. 8/9/2019 Journal Entries and Ledger Question and Answer 4/7 Perpetual and Periodic Inventory Journal Entry - Cash Income Example Journal Entry - Income on Credit Example Journal Entry - Debtor Pays Example Journal Entry - Expenses Example Journal Entry - Drawings Example T-accounts How to Balance a T-account Find more exercises like this on the Full Accounting Questions and Answers page. Moderate 30–35 P7-9 Notes receivable journal entries. The text of the description should contain: o What is being transferred/corrected o Where it is beingtransferred. We record the $40 to the Input Tax Credits . Determine a balance for each account. Prepare journal entries to reflect their impact upon the general long-term debt account group. Free PDF download of TS Grewal Accountancy Class 11 Solutions All Journal Exercise Questions with Solutions to help you to revise . Debt requires repayment and an interest component. Bought medical equipment on account from Bennett Surgical Supply, $849, paying $200 down with the balance due in thirty days. 2 Explain the accrual basis of accounting. Basic Accounting Journal Entries Exercise. Tally Question Paper with Answer Pdf in Hindi. Disadvantages include giving up ownership and marketability of stock. The chart of accounts can be expanded as more accounts become necessary for improved reporting of transactions. 5 Use Journal Entries to Record Transactions and Post to 4. JOURNALS AND JOURNALIZING AFTER STUDYING CHAPTER 4, YOU WILL BE ABLE TO: 1. 2 Paid rent for commercial space, P20,000. 3 Employed a part-time worker to begin work on the first Monday of next month,. Transactions are manually entered into the accounting record using adjusting journal entries (AJEs) which present debits before credits. tally-online-gk-questions-answers. Problems 2: Prepare general journal entries for the following transactions of a business called Pose for Pics in 2016: Aug. Other names used for general […]. If you want to do well in any competitive exam, such as school or college exam or viva, job written exam or interview, etc. 1 Commenced business with cash 2,00,000. Post the entries from the general journal and the total of the sales journal to the gen-eral ledger. Now the firm has cash and equipment. •June 1 Purchased store equipment for $5,000 and paid cash. emphasizes the importance for the auditor to exercise professional skepticism when. Learn how to convert a PDF into another document format. A list of all transactions appears in the general ledger and the sum of assets will equal the sum of liability and equity accounts on the balance sheet. PDF Guide to Bookkeeping Concepts. ____ A transaction is any event that has a financial impact on a company. Accounting journal entries practice. Step 5: A worksheet was completed. In this step, all the accounting transactions are recorded in general journal in a chronological order. True or False: Double-entry accounting assures that debits equals credits. Accounting Cycle Exercises III 6 Problem 1: Worksheet Problem 1 Following are three separate transactions that pertain to prepaid items. Answers to Section C: Multiple Choice Questions ˘ $ ˘˘ + ˇ & ˘ˇ + ˆ & ˘ˆ & ˙ , ˘˙ $ ˝ , ˘˝ , ˛ + ˚ $ ˜ + $ Accounting Test Question With Answers On Accounting Equation and Debit And Credit _____ (Page 10) ˘ ˇ ˆ ˙˝ ˘ ˇ ˘˘ ˙˝˘ ˙˛ ˙ ˇ ˘˘ ˙. Total each of the columns of the special journals, and post the appropriate totals to the general ledger; insert the account balances. During July, the owner completed these transactions (PHP = Philippine Peso, currency of Philippines): July 1. 1 Recording Cash Receipts 47 Exercise 8 Exercise 9 Exercise 10 Exercise 11 Exercise 12 of a Service Business. BRIEF EXERCISE 4-7 The accounts that will appear in the post-closing trial balance are: Accumulated Depreciation N. Record Keeping In which journal would you record each of the following transactions? Indicate your selection with a tick (() Scenario Cash Payments Journal Cash Receipts Journal Purchases Journal Sales Journal 1 You received a cheque for goods you sold ( ( ( ( 2 You collected the car from your garage mechanic after it had been serviced that day and you wrote a cheque to cover the invoice. Opened a business bank account with a deposit of 30,000. Every event is documented with double-entry, and an opposite entry is completed as well. Step 3: Information was posted or transferred from journal to ledger. 4-59 Transactions during the month of February Feb. The following transactions directly affected Rose City's general fund and other governmental funds. Batan, Capital Supplies Accounts Payable BRIEF EXERCISE 4-8 The proper sequencing of the required steps in the accounting cycle is as follows: 1. Exercises 11-1 through 13-2 must be completed before starting Exercise 14-1. 54 Chapter 2Transaction Analysis Chapter 1 introduced the financial statements. Export the Journal to Excel and save as a PDF file. CONTENTS OF THE GEN ERAL JOURNAL. PDF Accounting Principles 13th Edition Weygandt Test Bank. Jay Kumar started business with cash ₹ 3,00,000 2. Today we will learn "40 short questions and answers-Transaction. To increase an asset account, we make a debit entry. If working with the fi rst printing, answer questions 1, 3, 4, and 5 only. Examples of service enterprises are plumbers, electricians, hairdressers, garden services, painters, and so on. Activity 1: Transactions Prepare the general journal entries to record the following transactions for the business for the month of May 2016 (ignore GST): May 1 Owner deposited $50,000 of his own money into the business’ bank account. (PDF) Chapter 4 Exercise: Recording transactions with journal. (Capital introduced by Max in cash for 10,000). ” It will definitely help you to do well in any kind of competitive exam. 118 Review Summary of Study Objectives Answer Self-Study Questions Complete Assignments DO IT! DO IT! After studying this chapter, you should be able to: 1 Explain the time period assumption. Accounting Cycle Exercises III. Collected one half of what customers owe the company e. It will keep all of the cleared items that you selected and Saved as Pending. Cash transactions of a trading enterprise. PDF Cash Receipt Journal, Cash Payment Journal. Bills Payable Book B/P accepted 8. Kraft Catering received $600 cash for the catering party that was performed two months ago. 2 A,B Environmental Services, Inc. Long Answer Question: Exam Based Problems and Solution. 9 Answer the following questions: 1. Prepare the journal entries required to record these transactions in the . Exercise 1-9 (15 minutes) Examples of transactions that fit each case include: a. The journal makes several significant contributions to the recording process: a. Record the transactions stated above in good general journal form. Simple 15-20 E7-13 Assigning accounts receivable. Calls for a detailed analysis of numerous transactions, journalizing, and the application of the realization and matching principles. What must a user guarantee with respect to a transaction and database consis-tency?. PDF CHAPTER 6 Recording Transactions. Goal Statement1 - 2 + Posting Rules 3. entries Step 3 Post the data about transactions Step 4 Prepare a worksheet A journal is a record of original entry ANSWER: QUESTION: . It's going to help you get a brief idea of the accounting equation. Journal proper is used for recording only those transactions as cannot be recorded in any of the other subsidiary books 24. School subject: Principles of Accounts (POA) Grade/level: Grade 8. Grocery stores of all sizes must purchase product and track inventory. The following shows the transactions happened in Mr Harveyman's business in the first week of March. * If the balance of the Cash book is taken as a starting point then Cash book balance is to be adjusted in accordance with the entries passed in the Bank pass book and. In this chapter you will learn to post journal entries to the general ledger and to prepare a trial balance (Steps 4 and 5 in the accounting cycle illus-trated in Figure 7-1). 00 inclusive of VAT for C Evans January 8. After proper analysis, the business transaction is recorded in journal in a: chronological order. " It will definitely help you to do well in any kind of competitive exam. d) While passing entries in Purchase journals choose the name of the creditor against the field Party's A/c Name:, if it is a credit purchase. Cash Book All Cash/bank transactions including Contra entries 2. Answer: There are ten (10) steps in the accounting cycle. In all journal entries, the total of debit account amounts should be equal to the total of credit account amounts. The opening entry is the very fi rst journal entry recorded in a journal. 4) Transactions are initially recorded in a journal. Exercise G Using your answer for the previous exercise, prepare a trial balance. Since all monthly transactions were analyzed, journalis and, and published on a continuous basis of day-to-day during the accounting period (a month in our example), we are ready to start working in the Preparation of a balancet. April 5 Goods purchased on credit from –. Step 1: Business transactions occurred and generated source documents. Cash collected for Ironing Services performed during the first month amounted to $150. Paid utilities expense, $1,500. CHAPTER 2 THE RECORDING PROCESS. April 1 Rachit started business with cash 90,000 and Machinery 40,000. PDF Chapter 3 Adjusting the Accounts. During January the following transactions were recorded: January 2 A cheque for £460. In some cases, you likewise accomplish not discover the revelation headline writing exercises with answers that you are looking for. He plans to prepare a monthly financial statement. ____ Examples of accrued expenses include salary, rent, and interest. Prepare general journal entries for the following transactions of a business called Pose for Pics in 2016: Aug. Post journal information to ledger accounts 4. Do your homework in pen and mark in pencil. Journal proper is used to record purchase of furniture on credit 25. Provide objective and reliable evidence about transactions and events and their amounts. Analysis of transaction: This transaction increases furniture (assets) and decreases bank (assets) by ` 60,000. Analyzing transactions and recording them as journal entries is the first step in the accounting cycle. 1) On September 1, 20X7, the company received a $48,000 payment from an advertising client for a 6-month advertising campaign. Use the following information to answer Exercises E2-16 and E2-17. Record the following transactions in the above cash journal. Prepare “T accounts” for each balance sheet account and prepare a balance sheet. Bank Reconciliation Questions & Answers 2 | P a g e receipt and then return to the Bank Reconciliation > Maintenance > Bank Transactions > Create Transactions tab and execute the bank account group again. Jan 5 Borrowed $50,000 from the bank by signing a notes payable. pdf from ACCOUNTING Accounting at Ateneo de Davao University. Journal Voucher in Tally - Examples, & How to Enter Journalizing Transactions in Accounting (With Examples) February 11, 2021. 2: Prepare general journal entries for the following transactions of a business called Pose for Pics in 2016. The following transactions occurred during September of this year. Use the chart of accounts below. Moderate 30–35 P7-10 Comprehensive receivables problem. The correct answer is "analysis of business transaction" (option 3). ____ Posting refers to process of recording journal entries. The following example transactions and subsequent journal entries for merchandise purchases are recognized using a perpetual inventory system. A journal is referred to as a book of original entry. Define accounting terms related to journalizing transactions. #1 Transactions · #2 Journal Entries · #3 Posting to the General Ledger (GL) · #4 Trial Balance · #5 Worksheet · #6 Adjusting Entries · #7 Financial Statements · #8 . Why does a DBMS interleave the actions of different transactions instead of exe-cuting transactions one after the other? 3. Check that you entered Exercise 1-1's transactions. Immediately after recording each transaction, post to the accounts receivable ledger. Problem 1: On April 01, 2016 Anees started business with Rs. A possible answer is that the accounts that change more often are the . $345 $345 DATE ACCOUNT TITLE AND EXPLANATION PR. 1: Hashim Khan, the owner, invested Rs. Read Online Journal Entries And Ledger Exercise. operates a small retail store in the mall that sells baseball caps. However, it records journal entries in a similar way. Adjusting Journal Entries have already been recorded for you. Opening a General Ledger Account. 9 performed services for a customer and billed the …. Difficulty Rating: Beginner --> Intermediate Time limit: 12 minutes. • A journal is a formal and chronological record offinancial transactions before their values are accounted for in the general ledger asdebits and credits. Journalizing involves recording business transactions to keep an accounting record, using the double-entry accounting method. - Debit = Left hand side or column (amount paid) - Credit = Right hand side or column (amount received) • A journal lists financial transactionsin chronological. Financial Accounting Exercises. 184) Remember, for ease of presentation we are using a month as the accounting cycle for Clark's. QuickBooks Online Education Exercise Set #1 Answer Key 5 March (Chapters 3-5) To view the student exercise transactions create the Transaction Detail Report for March of last year. 15 Journaling Exercises to Help You Heal, Grow, and Thrive Maintaining a gratitude journal relieves stress and exploring what you are happy for is a Take a pen and paper and answer the. 3 Analyze and Record Transactions for Merchandise. 1, paid $60 for 4 months of ads in the School newspaper. December 2, Owner P created a new Entity B and invested. If it is a cash transaction, choose cash or bank. The exercises in Part 3 are cumulative. Accountants and bookkeepers often use T-accounts as a visual aid to see the effect of a transaction or journal entry on the two (or more) accounts involved. General ledger, accounts receivable ledger, accounts payable ledger. 1000+ Tally ERP 10 Questions and Answers. Deepak is a dealer in stationery items. Journal Entry for Business Started (in cash) When a business commences and capital is introduced in form of cash. When we introduced debits and credits, you learned about the usefulness of T-accounts as a graphic representation of any account in the general ledger. 20 Full PDFs related to this paper Read Paper Chapter 4 Exercise: Recording transactions with journal entries College Caps, Inc. Questions and Answers- Accounting Equation. Here we discuss Accounting Journalizing Transaction, its Types and Categories, and its advantages. Practice Problem #1: Journalize each of the following transactions in a two-column journal and post the entries to T-accounts. Write the account number on the ledger account form. An accounting journal entry is the method used to enter an accounting transaction into the accounting records of a business. Define general journal, account, ledger of accounts, posting, transactions, debit and credit, trial balance, and adjusting entries, and 3. Required: Record journal entries for the transactions and post them to ledgers. Darin Jones, a scphcmore at State University, started the Quick Clean Laundry Service with a $100 cash investment. From the following transactions, pass journal entries for the month of January and February, 2018. Journal entries to record inventory transactions under a periodic inventory system Presentation of Financial Statements, Discontinued Operations, ASC 205 Journal entry to record the collection of accounts receivable previously written-off. 5 (c) In Contra journal, first choose the account which gets increased and thereafter the account which gets decreased. not journalized until after the financial statements are prepared. GENERAL LEDGER All $105 10 60 10 60 $ 15 10 150 30 170 50---2. Effect of Internal Controls on Journal Entry Testing. Write the letter of the transaction in the account before the dollar amount. transactions in a record book called a journal. Nirmal has the following transactions in the month of April. transfer journal entries to the ledger accounts. 170) Journalizing and posting closing entries (p. Top 250+ Tally Practice Questions with Answers. Journalizing is the process of recording transactions in a journal. Example – Max started a business with 10,000 in cash. During the month of April, Leon completed the following transactions for her bicycle rental business: April 2 Began business by placing P120,000 in a business checking account. Bad Debts (when customer is declared insolvent and amount is irrecoverable from him). If the debit side of an account is heavier than credit side, the account will show a balance. Prepare and analyze the trial balance A. Answer:- * Bank Reconciliation Statement is prepared either by starting with the Bank pass book balance or Cash book balance. Evaluate the transactions and prepare journal entries for this activity. Assume Cash is account #1 and Capital is account #100. Define, identify, and understand the relationship between asset, liability, and owner’s equity accounts. PDF QuickBooks in the Classroom. The accounting process starts with the recording of transactions in the form of journal entries. Bookkeeping Transactions 16 Example 2 - continued Answer 2 Dual effect Increase inventory £2,500 (asset) Decrease cash £2,500 (asset) TLC's position is: Assets Capital £ £ Inventory 2,500 Capital introduced 10,000 Cash 7,500 3 Buy inventory on credit. It brings to light common problems and the solutions to fix them. Explain the five steps in journalizing and posting transactions. As an instructor, there are many uses for these exercise questions, such as: • Hand out the entire set of questions for a chapter as an exam at the completion of. Cash Accounts Payable Rent Expense Accounts Receivable Capital Stock Utilities Expense Supplies Dividends Equipment Prepaid Insurance Fees Earned a) Issued capital stock for cash, $27,500. Questions, Classroom Demonstration Exercises, Exercises, and Problems 76 Continuing Problem 91 CHAPTER 3 BEGINNING THE ACCOUNTING CYCLE: JOURNALIZING, POSTING, AND THE TRIAL BALANCE 92 Learning Unit 3-1: Analyzing and Recording Business Transactions in a Journal: Steps 1 and 2 of the Accounting Cycle 93. recording transactions is the chart of accounts. The following transactions occurred during June 2004. It is exam based comprehensive question and solution. Question 19: What is the name of the book in which the transactions are initially recorded with a brief explanation of the debit and credit analysis? Answer: Journal. Related MaterialQuiz 3 - Accounting Fundamentals - IntermediateWhat is the Journal Entry for Interest on Drawings?Accounting - QuizWhat is the Journal Entry for Loss on Sale of Fixed Assets?Is cash book both a journal and ledger?What is the difference between Journal Entry and Journal Posting?Quiz 8 - Accounting Terms - Beginner. Entering the transaction in the Petty Cash book. You might not require more times to spend to go to the ebook instigation as well as search for them. To Bank a/c Some special entries : 1. GST on this transaction = 400 x 10% = $40. Journalizing is the foundation for your financial records. Accounting questions and answers 'In-Class Exercises' exercises can earn 8 points each and must be handwritten by you on paper and scanned to PDF and then submitted in CANVAS for grading. A complet e entry consists of (1) the date of the transaction, (2) the accounts and amounts to be debited and credit ed, and (3) a brief e xplanation of the tr ansaction. For each transaction, it provides date, name of the accounts included, the amount of each debit and credit, references, an explanation of transaction and a column to which each debit and credit was recorded. general journal date accounts debit credit 1-2x5 cash 20,000 capital stock 20,000 issued stock to robert dennis for cash 1-4-x5 equipment 15,000 accounts payable 15,000 purchased equipment on account 1-12-x5 cash 30,000 revenues 30,000 provided services to customers for cash 1-15-x5 supplies expense 4,000 accounts payable 4,000 received bill for …. make sure a journal entry is not posted twice. Activity 1: Transactions Prepare the general journal entries to record the following transactions for the business for the month of May 2016 (ignore GST): May 1 Owner deposited $50,000 of his own money into the business' bank account. Search for Customer Contact List. Step 2: Business transactions were analyzed and recorded in a journal. LEARNING OBJECTIVES 1Analyze transactions 2Understand how accounting works 3Record transactions in the journal 4Use a trial balance. Moderate 25–35 P7-7 Assigned accounts receivable—journal entries. You must choose whether the transactions would be recorded in the Cash Payments, Cash Receipts, Purchases or Sales Journal. Linda withdrew $30 for personal use. See every exercise as part of your preparation for the test/exam. Start studying Chapter 14: Journalizing AR & NR Transactions. So today, we're going to learn the Top 20 Questions and Answers-Accounting Equation. Exercise 1: Keeping records of transactions. Entries to the ledger are made through journal entries. There are two types of accounting transactions based on objective, namely business or non-business. Question-20: Which is the list of debit and credit balances of the ledger account? Answer: Trial Balance. The accounting period commenced 1 July 2002 and continues until 30 June 2003 • Steven commenced business with $20 000 cash contribution to the business. Journalizing and posting adjusting entries (p. 174) Preparing a post-closing trial balance (p. Gray and a few friends invest $50,000 to begin Genie Car Wash and the business issues common stock to the stockholders. ANSWER: QUESTION: What is journalizing? Page 14 . 100,000 and other transactions for the month are: 2. Posting is where you transfer the data you have recorded in journaling to ledger accounts. Compress a PDF file with free or professional tools. Transaction #1: On December 1, 2021, Mr. 5 The Accounting Cycle Completed. 3,000 cash for an insurance policy covering the next 24 months. Record in equation form the financial effects of a business transaction. In the business world, the cycle can be any time period, but is usually one year. Presented here are five economic events. Jan 10 Purchase equipment by paying cash for $25,000. Top 1000+ Tally Online Test/Mock Test. qxd 9/19/13 8:33 AM Page 23 Final PDF to printer. General journal entries are different to other transactions in AccountRight. Type the date that you entered theJournal transactions. Journalizing Date Account Titles Ref. 5-4) Prepare an income statement, statement of owner’s equity, and balance sheet from the completed worksheet. The incorporation laws and which states have favorable. 3 A book to record transactions where money is taken OUT of the business bank account. If a transaction affects multiple accounts, the journal entry will detail . Gray; hence: Transaction #2: On December 5, Gray Electronic Repair Services paid registration and. To perfectly journalize your transactions, there are three simple steps you have to follow. Journalizing is the methodical documenting of transactions in the appropriate journals. Transactions-Journal Entries Transactions-Journal Entries-2 Transactions-Journal Entries-3 Enter the transaction amount Select the appropriate Debit Account from the Pull-Down Menu (Click on the arrow) Select the appropriate Credit Account from the Pull-Down Menu (Click on the arrow) Description: Enter a brief description of the transaction. An account from the chart of accounts. Journalizing transactions exercises with answers pdf. Assume the date of the trial balance is March 31. Advantages of raising capital through stock include no repayment, no interest, and no mandatory dividends. Encyclopedia of Philosophy)CHAPTER 8 Completing the Accounting Cycle3. Purchase Return Book Only credit Purchases Returns 5. Journalize the transactions for March 2016, using the required journal (s). Instruction: Record the first transaction from page A8 in the formal journal below and post to the formal ledger accounts. Record the transactions in either the sales journal or the general journal, as appropriate. A quick introduction to installing a free PDF viewer. One side is the giver, the other. Complete this question by entering your answers in the tabs below. Prepare the general journal entries to record the following transactions for the business for the month of May 2016 (ignore GST):. 5 paid $200 cash for office supplies. 05: Purchased 300 units @ $60 each. Purchased inventory on account for $10,000 f. Since the asset is recorded on the debit side and the car is an asset, money owed in credit is a liability and falls on the credit side. 1 EXERCISES (page 180) Exercise 1, p. pdf The General Journal Exercise only uses the General Journal for recording transactions while the Special Journals Exercise uses Special Journals for recording transactions. After marking the exercise in class, always check your errors. Discount on bonds payable should be reported on the balance sheet of the issuing corporation as a(n).