Journalizing
Analyzing transactions and recording them as journal entries is the second step of accounting process. The following table shows the journal entries for the above events.
| Company A | ||||
| Journal Entries | ||||
| January 31, 2010 | ||||
| | ||||
| Date | Account | L.P. | Debit | Credit |
| Jan 1 | Cash Common Stock | | 100,000 | 100,000 |
| Jan 2 | Prepaid Rent Cash | | 36,000 | 36,000 |
| Jan 3 | Equipment Cash Notes Payable | | 80,000 | 60,000 20,000 |
| Jan 4 | Office Supplies Accounts Payable | | 17,600 | 17,600 |
| Jan 13 | Cash Service Revenue | | 28,500 | 28,500 |
| Jan 13 | Accounts Payable Cash | | 17,600 | 17,600 |
| Jan 14 | Wages Expense Cash | | 19,100 | 19,100 |
| Jan 18 | Cash Accounts Receivable Service Revenue | | 32,900 21,200 | 54,100 |
| Jan 23 | Cash Accounts Receivable | | 15,300 | 15,300 |
| Jan 25 | Cash Unearned Revenue | | 4,000 | 4,000 |
| Jan 26 | Office Supplies Accounts Payable | | 5,200 | 5,200 |
| Jan 28 | Wages Expense Cash | | 19,100 | 19,100 |
| Jan 31 | Dividends Cash | | 5,000 | 5,000 |
| Jan 31 | Electricity Expense Utilities Payable | | 2,470 | 2,470 |
| Jan 31 | Telephone Expense Utilities Payable | | 1,494 | 1,494 |
| Jan 31 | Miscellaneous Expense Cash | | 3,470 | 3,470 |