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Hi, can I get some help with Excercise 2-31 and 2-32 please Exercise 2-31 Analyzing Transactions Using the Accounting Equation L01 Hint: See Demo 2-1
Hi, can I get some help with Excercise 2-31 and 2-32 please
Exercise 2-31 Analyzing Transactions Using the Accounting Equation L01 Hint: See Demo 2-1 Dynamic Corporation completed the following transactions during the month of March 2020. 1. Issued 20,000 shares of its own common stock for $200,000 cash. 2. Borrowed $100,000 cash in return for a 9%, one-year note payable. 3. Purchased equipment at a net cash cost of $100,000 with cash. 4. Purchased inventory on account for $80,000. Assume that the company uses the perpetual inventory system. 5. Sold merchandise for $100,000 (and a cost of $60,000); collected $70,000 cash, and the balance is due in one month. Hint: Consider two parts to the transaction-one for sales and one for cost of goods sold. 6. Paid $25,000 cash for operating expenses. 7. Paid for half of the merchandise previously purchased on account in transaction 4. 8. Collected 40% of the balance due on the sales in transaction 5. 9. Paid cash for an insurance premium, $1,200 for one year of coverage (debit prepaid insurance). 10. Paid legal fees for the month of March, $10,000 cash. Required Indicate the effects on the accounting equation for each of the 10 transactions. Provide your answer in the format illustrated in Demo 2-1. Refer to the information in Exercise 2-31 to complete the following requirement. Required Prepare journal entries to record the ten transactions from Exercise 2-31. Exercise 2-32 Recording Journal Entries LO2 Hint: See Demo 2-2B
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