Netsolutions On November 1.2002, I started a business called NetSolutions. I plan to use my knowledge of microcomputers and offer computer consulting services for a fee. The following double-entry transactions show how amounts received (debits always equal amounts given(credits). Chris Clark Owner c2-11
C2 - 11 NetSolutions “ On November 1, 2002, I started a business called NetSolutions. I plan to use my knowledge of microcomputers and offer computer consulting services for a fee. The following double-entry transactions show how amounts received (debits) always equal amounts given (credits).” Chris Clark, Owner
Business transactions Entry A Chris clark (investor) Chris Clark deposits $25,000 in a bank account for Netsolutions in exchange for capital stock receive NetSolutions/ give Debit (investee) Credit General Journal Date Description Debit Credit 1111 c2-12
C2 - 12 Business Transactions General Journal receive Debit give Credit NetSolutions (investee) Entry A. Chris Clark (investor) Date Description Debit Credit 11/1 Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock
Business transactions Entry A Chris clark (investor) Chris Clark deposits $25,000 in a bank Cash account for Netsolutions in exchange for capital stock receive NetSolutions/ give Debit (investee) Credit General Journal Date Description Debit Credit 11/1 Cash 25,000 c2-13
C2 - 13 Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock. Business Transactions General Journal receive Debit give Credit NetSolutions (investee) Cash Chris Clark (investor) give Credit Entry A. Date Description Debit Credit 11/1 Cash 25,000
Business transactions Entry A Chris clark (investor) Chris Clark deposits $25,000 in a bank Cash Capital account for Stock Netsolutions in exchange for capital stock receive NetSolutions/ give Debit (investee) Credit General Journal Date Description Debit Credit 11/1 Cash 25,000 Capital stock 25,000 c2-14
C2 - 14 Business Transactions General Journal Date Description Debit Credit 11/1 Cash 25,000 Capital Stock 25,000 receive Debit give Credit NetSolutions (investee) Cash Capital Stock Chris Clark (investor) give Credit Entry A. Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock
Business transactions Entry B. Land Owner(seller) Netsolutions buys land for $20,000 receive NetSolutions/ give Debit (buyer) Credit General Journal Date Description Debit Credit 11/5 c2-15
C2 - 15 NetSolutions buys land for $20,000. Business Transactions receive Debit give Credit NetSolutions (buyer) Entry B. Land Owner (seller) General Journal Date Description Debit Credit 11/5