Journalize the following transactions in the general journal using the following blank form (make as many copies as needed). When making journal entries, each individual journal entry’s debits should equal its credits. (The amount for a journal entry can be incorrect or the entry can be incorrect. However, the debits still have to equal the credits even though the entry is incorrect. If the journal entry is incorrect, it can be corrected later when making adjusting/correcting journal entries. For example, if the amount is supposed to be $1,100, and for some reason the amount of $1,010 is recorded, this is acceptable—although incorrect, it can be corrected later.)
The total of the debits must always equal the total of the credits for each journal entry—always. This is a fundamental GAAP that cannot be violated.
a. On January 1, 2015, a payment in cash for $12,000 is made for prepaying rent for the entire year 2015.
b. On January 4, 2015, accounting services are performed and payment is received in cash for the amount of $1,900.
c. On January 9, 2015, a payment in cash for advertising is made in the amount of $850.
d. On January 10, 2015, office supplies are purchased in the amount of $75 with cash.
e. On January 14, 2015, accounting services are performed and payment is received in cash for the amount of $2,725.
f. On January 20, 2015, the telephone bill for the amount of $660 is received and paid with cash.
g. On January 20, 2015, the utilities bill for $2,925 is received. The bill won’t be paid until it is due on February 15, 2015.
h. On January 27, 2015, accounting services are performed on account in the amount of $3,750.
i. On January 28, 2015, a payment in cash for $1,500 is made for a bill from an advertising agency.
