transactions for FGH Financial Services

Question 1

Journalise the following transactions for FGH Financial Services in the General Journal.

Explanations/Narrations are NOT required.

  1. July 1 FGH Financial Services received $11,000 from the owner Frank Hood to start the business
  2. July 2 Signed a lease agreement on premises and paid first month’s rent of $2,800.
  3. July 4 Purchased office furniture on credit for $600.
  4. July 7 Prepared financial advice for a client and received payment of $300 Cash.
  5. July 8 Purchased office supplies for cash of $200. These supplies will be used in the future.
  6. July 10 Completed insurance application for Client on credit for $150.
  7. July 13 Frank Hood took cash drawings of $600.

Question 2 – Reflection 

Why is it important for a professional accountant to understand double entry accounting and the ‘debit and credit rules’? Explain your answer.

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