Financials Example

GENERAL JOURNAL
DATE		ACCOUNT TITLES & EXPLANATION		DR	CR
1996 Dec.	1	CASH		$ 6,500.00
			SMITH, CAPITAL		$ 6,500.00
		Investment by owner

	2	OFFICE SUPPLIES		$ 100.00
			CASH		$ 100.00
		Purchased Office Supplies

	3	OFFICE EQUIPMENT		$ 7,000.00
			CASH		$ 7,000.00
		Purchased Office Equipment

	4	LAW LIBRARY		$ 3,000.00
			A/P		$ 3,000.00
		Purchased Books for the Law Library

	4	PREPAID INSURANCE		$ 1,200.00
			CASH		$ 1,200.00
		Paid for insurance for the next 12 months

	5	A/P		$ 500.00
			CASH		$ 500.00
		Paid $500 of the Accounts Payable

	6	CASH		$ 2,000.00
			UNEARNED FEES		$ 2,000.00
		Received cash for work not yet done

	8	SMITH, WITHDRAWAL		$ 1,000.00
			CASH		$ 1,000.00
		Smith withdrew $1000 for personal use

	9	CASH		$ 4,000.00
			FEES EARNED		$ 4,000.00
		Received cash for work done.

	10	SALARY EXPENSE		$ 1,000.00
			CASH		$ 1,000.00
		Paid cash for salary expenses

	11	RENT EXPENSE		$ 1,000.00
			CASH		$ 1,000.00
		Paid cash for rent expenses

	15	UTILITY EXPENSE		$ 200.00
			CASH		$ 200.00
		Paid cash for utility expenses

	TOTAL DEBITS AND CREDITS (should balance--> it does!)			$27,500.00	$ 27,500.00
	TOTAL DEBITS AND CREDITS (should balance--> it does!)