Express the following transactions of the Harris Grocery Store, a sole proprietorship, in journal-entry form. You may

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Express the following transactions of the Harris Grocery Store, a sole proprietorship, in journal-entry form. You may omit explanations for the journal entries.

(1) John Harris contributes $25,000 cash to help set up the grocery store.

(2) A 60-day, 8-percent note is signed in return for an $8,000 loan from the bank.

(3) A building is rented, with the annual rental of $5,000 paid in advance.

(4) Display equipment costing $8,000 is acquired. A check is issued.

(5) Merchandise inventory costing $25,000 is acquired. A check for $4,000 is issued, with the remainder payable in 30 days.

(6) A contract is signed with a nearby restaurant under which the restaurant agrees to purchase $4,000 of groceries each week. A check is received for the first 2 weeks’ orders in advance.

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Financial Accounting An Introduction To Concepts Methods And Uses

ISBN: 9780030452963

2nd Edition

Authors: Sidney Davidson, Roman L. Weil, Clyde P. Stickney

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