Book 1 - Chapter 24

LG 24-1, continued

i.	Riverside Enterprises performs $500 of services on account.

j.	Crescent City Company receives a $450 bill for utility services. The bill will be paid later.

	Note: Remember that an increase in an expense decreases the owner’s equity, and the equation stays in balance.
k.	Sonoma Company, (f ) above, performs $1,200 of services.

l.	Atascadero Company makes a $1,000 loan payment. The payment includes $200 of interest expense.

	Note: Remember that an increase in an expense is decreasing owner’s equity. Therefore, the equation remains in balance.

Learning Goal 24, continued

SOLUTIONS

Learning Goal 24: Use a Journal

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Worthy & James Publishing is a provider of basic accounting books covering fundamental accounting principles, business accounting, and business math. Topics in financial accounting and business accounting covered include the balance sheet, the income statement, financial ratios, and bank reconciliation.