Journal Entries

Basics examples of how to do

general journal entries
 List of Transactions for the month of January 2006
• Marie Collins invested $100,000 of her own money into her new pet shop
on January 1, 2006. The store will be named “Love thy Pet.”
• For January 1, 2006, Marie paid $1,350 rent on the pet shop.
• For January 2, 2006, Marie borrowed $50,000 by signing a 4-month, 10%
note payable.
• For January 5, 2006, Marie purchased pet store equipment for $7,500 in
cash.
• For January 6, 2006, Marie hired two salespeople to begin work on the 9th
of January in the store for a bi-weekly wage of $800 each.
• For January 8, 2006, Marie receives a cash advance of $1,200 from a
customer for an Irish sheep dog that will not arrive from the breeder until
March 7, 2006.
• For January 10, 2006, Marie received $5,500 in cash for two bulldogs
sold to a customer.
• For January 14, 2006, Marie purchased 2-months of pet supplies on
account at a cost of $500 from Morrison pet supply store.
• For January 15, 2006, Marie declared and paid a dividend to stockholders
of $400.
• For January 31, 2006 Marie purchased a 2-year insurance policy costing
$2,400 that will expire on January 31 of 2008.
• For January 31, 2006, Marie paid the salespersons bi-weekly wages.
Marie Collins invested $100,000 of her own money
into her new pet shop on January 1, 2006. The
store will be named “Love thy Pet.”
For January 1, 2006, Marie paid $1,350 rent on the
pet shop.
For January 2, 2006, Marie borrowed $50,000 by
signing a 4-month, 10% note payable.
For January 5, 2006, Marie purchased pet store
equipment for $7,500 in cash.
For January 6, 2006, Marie hired two salespeople to begin
work on the 9th of January in the shop for a bi-weekly wage
of $800 each.

This transaction requires no journal entries because

assets were not exchanged at the time of this event.
For January 8, 2006, Marie receives a cash advance of
$1,200 from a customer for an Irish sheep dog that will not
arrive from the breeder until March 7, 2006.
For January 10, 2006, Marie received $5,500 in cash for
two bulldogs sold to a customer.
For January 14, 2006, Marie purchased 2-months of pet
supplies on account for a cost of $500 from Morrison pet
supply store.
For January 15,2006, Marie declared and paid a
dividend to stockholders of $400.
For January 31, 2006 Marie purchased a 2-year insurance
policy costing $2,400 that will expire on January 31 of
2008.
For January 31, 2006, Marie paid the salespeople
their bi-weekly wages.