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Recording Transactions Using Journal Entries and T-Accounts Use the information below to complete the following. (1) Receive 22,500 in exchange for common stock. (2) Borrow
Recording Transactions Using Journal Entries and T-Accounts
Use the information below to complete the following.
(1) | Receive 22,500 in exchange for common stock. |
(2) | Borrow 4,500 from bank. |
(3) | Purchase 900 of supplies inventory on credit. |
(4) | Receive 6,750 cash from customers for services provided. |
(5) | Pay 900 cash to supplier in transaction 3. |
(6) | Receive order for future services with 1,575 advance payment. |
(7) | Pay 2,250 cash dividend to shareholders. |
(8) | Pay employees 2,700 cash for compensation earned. |
(9) | Pay 225 cash for interest on loan in transaction 2. |
a. Prepare journal entries for each of the transaction (1) through (9).
b. Set up T-accounts for each of the accounts used in part a. and post the journal entries to those T-accounts. (The T-accounts will not have opening balances.)
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