Analyzing and journalizing transactions

Showtime Amusements owns movie theaters. Showtime engaged in the following business transactions:

1-Jul Darrell Palusky invested $350,000 personal cash in the business by depositing that amount in a bank account titled Showtime Amusements. The business gave Palusky owner’s equity in the company.

2 Paid $300,000 cash to purchase a theater building.

5 Borrowed $220,000 from the bank. Palusky signed a note payable to the bank in the name of Showtime Amusements.

10 Purchased theater supplies on account, $1,700.

15 Paid $800 on account.

15 Paid property tax expense on theater building, $1,200.

16 Paid employee salaries, $2,800, and rent on equipment, $1,800. Make a single compound entry.

28 Withdrew $6,000 from the business for personal use.

31 Received $20,000 cash from service revenue and deposited that amount in the bank.

Showtime Amusements uses the following accounts: Cash; Supplies; Building; Accounts Payable; Notes Payable; Darrel Palusky, Capital; Darrel Palusky, Withdrawals; Service Revenue; Salary Expense; Rent Expense; Property Tax Expense.


Journalize each transaction of Showtime Amusements as shown for July 1. Explanations are not required.