Answer:
Sun Devil Hair Design
Journal Entries:
February 2:
Debit Advertising Expense $700
Credit Cash Account $700
To record the payment for advertising for the month of February.
February 7:
Debit Supplies $1,300
Credit Accounts Payable $1,300
To record the purchase of supplies on account.
February 14:
Debit Cash Account $2,900
Credit Service Revenue $2,900
To record the provision of beauty services to customers for cash.
February 15:
Debit Salaries Expense $900
Credit Cash Account $900
To record the payment of employee salaries for the month.
February 25:
Debit Accounts Receivable $1,000
Credit Service Revenue $1,000
To record the provision of beauty services on account.
February 28:
Debit Utility Expense $300
Credit Cash Account $300
To record the payment of utility bill.
Explanation:
Sun Devil Hair Design uses the general journal to record the its daily business transactions. Â The entries are made to reflect the accounting equation of Assets being equal to Liabilities + Equity at all times. Â When entering transactions in the general journal, the first step is to identify the accounts that are affected by each transaction. Â The account to be debited is recorded first followed by the account to be credited. Â Note that more than two accounts can be involved. Â However, with the double entry system of accounting, the accounting equation is always in balance.
