Oruro Johnson has the following transactions during August of the current year. Indicate (a) the basic analysis and (b) the debit–credit analysis illustrated on pages 82–86 of the text. Journalize the transactions.
|
Aug. 1 |
Opens an office as a travel agent, investing $25,000 in cash in exchange for common stock. |
|
4 |
Pays insurance in advance for 6 months, $1,200. |
|
16 |
Receives $5,000 from clients for arranging travel services |
|
27 |
Pays secretary $1,500 salary |