Question

ACCOUNTING CYCLE Journalizing transactions Journalize the following transactions into the general journal in accordance with the rules of Jour June 23 September 10 Cox Company pays $2,200 of monthly salaries. Owner deposits $44,000 in business bank account as an initial investment. Date Account Title Debit Credit to ?

Answer 1

General Journal

Date	Account Title and Explanation	Debit	Credit
June.23	Salaries Expenses	$2,200
	Cash		$2,200
Sep.10	Cash	$44,000
	Capital		$44,000

Explanation;  

1.Debit Salaries Expenses;  

When the company pays employees salary for service performed the salaries expenses account is affected. Salary expense is an expense with a debut balance. Salaries expense is debuted (Increased) because expenses increase when costs are incurred.

Credited Cash ;

When the company pays the salaries the cash account is affected cash is an asset account with a debut balance. Cash is credited (decreased) because cash decreased when company pays salaries.

2.Cash Account is Debited ;

Here the owner deposited cash in to the business account so the cash account is affected. Cash is an asset of the company with debit balance cash so cash is debited and increased because more cash in the business.

Capital Account is credited when the owner puts personal money into the business account. The capital account is affected. Capital is owner's equity with credit balance . Capital is credited and increased because an investment by the owner Increases owners equity.