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Prepare journal entries for the following transactions that took place during the year, 2022: Borrowed $50,000 cash on July 1, 2022, signing a two-year, 10%
- Prepare journal entries for the following transactions that took place during the year, 2022:
- Borrowed $50,000 cash on July 1, 2022, signing a two-year, 10% note payable.
- Purchased Land for $54,000 cash on July 1, 2022.
- Earned $50,000 in revenue, including $23,000 in cash and the rest on credit.
- Collected accounts receivable, $15,000.
- Paid wages to employees, $22,000.
- Purchased supplies of $4,500 on account.
- Paid accounts payable, $4,500.
- Recorded depreciation of $2,300 for the year.
- Recorded estimated bad debt expense of $500.
- Determined that only $1,500 of the supplies purchased in f. were on hand at the end of the year.
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