Question
Using the T accounts below, record the following transactions. Label each entry with the appropriate letter. a. The stockholders contributed cash of $40,000 and a
Using the T accounts below, record the following transactions. Label each entry with the appropriate letter.
a. The stockholders contributed cash of $40,000 and a truck worth $48,000 into the business in exchange for 8,800 shares of $10 par value stock.
b. Paid two months' rent in advance, $2,400.
c. Agreed to do a hauling job for a price of $6,400.
d. Performed the hauling job. Will get paid later.
e. Received payment of $2,000 on the hauling job.
f. Purchased gasoline on credit, $40.
There are t-accounts for the following:
-Cash (three entries)
-Accounts Payable (one entry)
-Accounts Receivable (two entries)
-Common Stock (one entry)
-Prepaid rent (one entry)
-Hauling revenue (one entry)
-Truck (one entry)
-Gasoline expense (one entry)
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