Required information Use the following information for Exercises 17-18 below. (Static) The following information applies to the questions displayed below.) The transactions of Belle Company's appear below. 1. D. Belle created a new business and invested $6,000 cash, $7,600 of equipment, and $12,000 in web servers. 2. The company paid $4,800 cash in advance for prepaid insurance coverage. 3. The company purchased $900 of supplies on credit. 4. The company paid $800 cash for selling expenses. 5. The company received $4,500 cash for services provided. 6. The company paid $900 cash toward accounts payable. 7. The company paid $3,400 cash for equipment. Exercise 2-17 (Static) Entering transactions into T-accounts LO A1 Fill in each of the following T-accounts for Belle Company's seven transactions listed here. The T-accounts represent Belle Company's general ledger. Code each entry with transaction number 1 through 7 (in order) for reference. Cash Supplies 1. Ending balance Ending balance Prepaid Insurance Equipment Ending balance Ending balance Web Servers Accounts Payable Ending balance Ending balance D. Belle, Capital Services Revenue Ending balance Ending balance Selling Expense Ending balance 1. D. Belle created a new business and invested $6,000 cash, $7,600 of equipment, and $12,000 in web servers. 2. The company paid $4,800 cash in advance for prepaid insurance coverage. 3. The company purchased $900 of supplies on credit. 4. The company paid $800 cash for selling expenses. 5. The company received $4,500 cash for services provided. 6. The company paid $900 cash toward accounts payable. 7. The company paid $3,400 cash for equipment. Exercise 2-18 (Static) Preparing general journal entries LO A1 Use above information to prepare general journal entries for Belle Company's 1 through 7 transactions. X Answer is not complete. No Transaction General Journal Debit Credit 1. Cash 6,000 7,600 Equipment Web servers 12,000 B 2. Prepaid insurance 4,800 3. Supplies 900 D 4. Selling expenses 800 E 5. Cash > 4,500 F 6. Accounts payable 900 G 7. Equipment 3,400 Exercise 2-24 (Static) Computing net income LO P1 A company had the following assets and liabilities at the beginning and end of this year. Beginning of the year End of the year Assets $ 60,000 105,000 Liabilities $ 20,000 36,000 a. Owner made no investments in the business, and no withdrawals were made during the year. b. Owner made no investments in the business, but did withdraw $15,000 during the year. c. Owner made no withdrawals during the year, but the owner did invest an additional $55,000 cash. d. Owner withdrew $15,000 during the year, but the owner did invest an additional $35,000 cash near year-end. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.) a. b. C. d. Beginning of the year-Equity $ 0 $ 0 $ 0 Owner investments Owner withdrawals Net income (loss) End of the yearEquity $ 0 $ 0 $ 0 Exercise 2-29 (Static) Calculating and interpreting the debt ratio LO A2 Company Dreamworks Pixar Universal Expenses $ 22,000 67,000 12,000 Total Assets $ 40,000 150,000 68,000 Net Income $ 19,000 27,000 5,000 Total Liabilities $ 30,000 147,000 17,000 a. Compute the debt ratio for each of the three companies. (Round your answers to 2 decimal places.) Company Debt Ratio Dreamworks Pixar Universal b. Which company has the most financial leverage? Largest financial leverage