Transactions are first journal

Transactions are first journalized and then posted to ledger accounts. In this exercise, however,
your understanding of the relationship between the journal and the ledger is tested by asking you to
study some ledger accounts and determine the journal entries that probably were made to produce
these ledger entries. The following accounts show the first six transactions of Avenson Insurance
Company. Prepare a journal entry (including a written explanation) for each transaction.

Cash Vehicles
Nov. 1 120,000 Nov. 8 33,600 Nov. 30 9,400
Nov. 25 12,000
Nov. 30 1,400
Land Notes Payable
Nov. 8 70,000 Nov. 25 12,000 Nov. 8 95,000
Nov. 30 8,000
Building Accounts Payable
Nov. 8 58,600 Nov. 21 480 Nov. 15 3,200
Office Equipment Capital Stock
Nov. 15 3,200 Nov. 21 480 Nov. 1 120,000

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