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5. Take Care Company completed the following transactions during September. Analyze each transaction and make the appropriate journal entry in the space provided on the
5. Take Care Company completed the following transactions during September. Analyze each transaction and make the appropriate journal entry in the space provided on the next page. 45 points Date 9/1 Transaction Description Pay 3 months' rent in advance using $6,000 cash 9/2 Purchase Merchandise Inventory paying cash $50,000 9/3 Purchase Merchandise Inventory on Account with terms 3/10 Net 30 $100,000 Sell Merchandise Inventory for cash. The sale is $2,500 and the Cost of goods Sold is $1,200 9/4 9/10 Provide Consulting Services for a customer on account for $9,000 with terms Net 30. 9/11 Pay employee salaries in cash $7,500 9/12 Purchase Office Supplies on Account with terms Net 30, $1,500 9/14 Sign Note Payable in exchange for Computer Equipment $20,000 9/17 Pay cash for the account from 9/3. It is outside the discount date, so the discount does not apply. $100,000 9/20 Receive the cash from the account from 9/10 for $9,000 9/21 A customer pays cash in advance for consulting services to be performed in October $4,000 9/23 Issue 5,000 shares of Common Stock with a Par Value of $1 per share in exchange for Land with a market value of $80,000 9/25 Pay cash for interest to holders of Bonds Payable $2,000 9/31 Journalize the adjusting entry for depreciation expense of Machinery $3,700 9/31 Journalize the adjusting entry to use up $2,000 of prepaid rent
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