Journalise the following transactions for FGH Financial Services in the General Journal.
Explanations/Narrations are NOT required.
- July 1 FGH Financial Services received $11,000 from the owner Frank Hood to start the business
- July 2 Signed a lease agreement on premises and paid first month’s rent of $2,800.
- July 4 Purchased office furniture on credit for $600.
- July 7 Prepared financial advice for a client and received payment of $300 Cash.
- July 8 Purchased office supplies for cash of $200. These supplies will be used in the future.
- July 10 Completed insurance application for Client on credit for $150.
- 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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