Review the journal entry and explain what the probable transaction would be requiring the entry and how this entry is impacting the financial statements. Explanation should cover the actual transaction that occurred.

Example: Utilities expenses 700, cash $700 Answer: Client paid current month's utility bill, asset is decreasing and net worth is decreasing.

1. Account Receivable 8,000 debit

Services Revenue $8,000 credit

2. Explain what the probable transaction would be requiring the entry, and how this entry is impacting the financial statements

Prepaid Insurance: 6,000 debit

Cash 6,000 credit

3. Explain what the probable transaction would be requiring the entry, and how this entry is impacting the financial statements.

Cash 100,000 debit

Office Equipment 24,000 debit

Common stock 124,000 credit

4. Explain what the probable transaction would be requiring the entry, and how this entry is impacting the financial statements.

Office Equipment 12,000 debit

Office supplies 2,400 debit

Accounts payable 14,000 credit