The document records transactions in the general journal of an air conditioning repair business. It shows transactions for initial investment and purchase of equipment and supplies. It also records revenues from services provided and payments made to suppliers and for expenses like rent, insurance, salaries and supplies.

1. Debit Credit
2013
MAY 1 Cash 350,000
Shop Equipment 45,000
F. Dee, Capital 395,000
Owner's initial investment
2 Prepaid Rent 60,000
Cash 60,000
Paid rent for 6 months
3 Shop Supplies 10,000
Accounts Payable 10,000
Purchased shop supplies
4 Accounts Payable 1,200
Shop Supplies 1,200
Returned shop supplies due to wrong specification
5 Transportation Equipment 550,000
Cash 165,000
Accounts payable 385,000
Purchased service van
6 Prepaid Insurance 12,250
Cash 12,250
Paid one year insurance for the service van
7 Shop Equipment 75,500
Cash 15,100
Accounts Payable 60,400
Bought shop equipment
8 Cash 35,750
Service Income 35,750
Rendered aircon repair services
9 Office Supplies 5,120
Cash 5,120
Purchased office supplies
10 Accounts Receivable 20,000
Service Income 20,000
Billed clients for aircon cleaning and repair services
GENERAL JOURNAL
Date Account Description

2. 11 Accounts Payable 60,400
Cash 60,400
Settled account with Kenneth Hardware in full
12 Cash 5,000
Accounts Receivable 7,500
Service Income 12,500
Rendered aircon repair service
13 Accounts Payable 38,500
Cash 38,500
Paid monthly installment
14 Accounts Payable 10,000
Cash 10,000
Settled account with Avenson in full
15 Salaries Expense 8,250
Cash 8,250
Paid wages of workers