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I am confused about how to journalize the last four entries. Wonder contributed $55,000 cash to the business in exchange for shares of common stock.
I am confused about how to journalize the last four entries.
Wonder contributed $55,000 cash to the business in exchange for shares of common stock. Purchased $9,000 of equipment paying cash. Paid $1,000 for a four-month insurance policy starting on December 1. Paid $16,000 cash to purchase land to be used in operations. Purchased office supplies on account, $2, 900. Borrowed $30,000 from the bank for business use. Wonder signed a note payable to the bank in the name of the corporation. The note is due in five years. Paid $ 1, 200 for advertising expenses. Paid $500 on account. The business received a bill for utilities to be paid in January, $230. Revenues earned during the month included $20, 500 cash and $3, 300 on account. Paid employees' salaries $3, 100 and building rent $1,000. Record as a compound entry. The business received $1, 050 for auto screening services to be performed next month. Cash dividends of $3, 500 were paid to stockholdersStep by Step Solution
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