Parkside Franks LLC — Rules & Special Journals Setup
1. Entity Formation & Initial Capital
Parkside Franks LLC is formed by Bob and Betty, each contributing $100.00 capital[cite: 1]. Their father extends a loan of $1,000.00 via a formal promissory note payable, providing $1,200.00 in initial operating bank funds[cite: 1].
2. Special Journals Decision Guide
Cash Receipts Journal (CRJ): Record any transaction where cash or bank deposits are received (Debit to Cash-Bank or Cash Box-Register).
Cash Payments / Disbursements Journal (CPJ): Record any electronic funds transfer, check, or cash paid out of the business (Credit to Cash-Bank).
Purchases Journal (PJ): Strictly for purchases of goods, merchandise, or supplies bought on credit/account (Credit to Accounts Payable - Supermarket).
General Journal (GJ): Catch-all journal for non-cash events, year-end adjustments, and periodic inventory closing entries.
3. Simulation Evaluation
You have two attempts per transaction. Entries are evaluated for correct account selection, balanced debit/credit values, and the correct designated Special Journal.