1)
Owner took furniture & office equipment from home business to new warehouse.
Purchased at a cost of $25,000.
I assumed that you would DR Office Equipment $25,000 but do you CR Capital?
2)
Utility Expense for month of general journal but not due until next month.
So, I – DR Utility Expense and then CR Accounts Payable
Is that correct?
3)
Owner paid his house property taxes out of business.
Since you can’t pay personal from business, I assumed that you would
DR Drawings and CR Cash
Is that right?
Thanks for any help. Been a while since I’ve been in school and no one seems to ever be in the chat room for the course to talk.
1) home business moved to warehouse
1)
Not understanding first statement: "Owner took furniture & office equipment from home business to new warehouse."
2)
Right, CR ACCT PAYABLE
3)
Yes that is right.
1)
Not understanding first statement: "Owner took furniture & office equipment from home business to new warehouse."
2)
Right, CR ACCT PAYABLE
3)
Yes that is right.
References :
3) http://blog.accountingcoach.com/drawing-account/