Use the information in Exercise 2-44 to complete the following.

a. Prepare journal entries for each of the transactions (1) through (9).

b. Set up T-accounts for each of the accounts used in part a and post the journal entries to those T-accounts. (The T-accounts will not have opening balances.)

Data from Exercise 2-44:

Transcribed Image Text:

Balance Sheet Income Statement Noncash %3D Earned Cash Liabil- Contrib. Net Expenses = Income Revenues - Transaction Asset Assets ities Capital Capital (1) Receive €50,000 in exchange for common stock. %3D (2) Borrow €10,000 from %3D bank. (3) Purchase €2,000 of supplies inventory on credit. (4) Receive €15,000 cash from customers for services provided. (5) Pay €2,000 cash to supplier in transaction 3. (6) Receive order for future services with €3.500 advance payment. (7) Pay €5,000 cash divicend to shareholders. II