• Record Business Transactions and Events.
  1. The owner contributed $200,000 cash to start the entity.
  2. The entity bought a computer on account for $2,000.
  3. The entity borrowed $5,000
  4. The entity bought some furniture which cost $1,000. The company paid $600 and will pay the rest in a few weeks.
  5. The furniture that was purchased in d was damaged by an employee in the company. It had to be disposed.
  6. Performed services and received $700 cash.
  7. Performed services on account $1,600.
  8. Collect cash from a customer on account $1,600.
  9. Bought $2,000 worth of inventory on credit.
  10. Paid off the full amount in b.
  11. Sold inventory that cost $2,000 for $2,750 cash.
  12. Sold inventory for $3000 on credit. The cost of goods sold was $2,000.
  13. Paid telephone $100 and advertising $500.
  14. The entity paid $6000 for half-year rent in advance.
  15. The entity uses a straight-line method to record the depreciation of equipment. The useful life of the computer that was bought in b was estimated to be 4 years with no residual value. Record one-year depreciation expense for the computer.