Chapter 2 Journal Entries Example2

Chapter 2 Journal Entries Example2 - 9 Purchased $500 of...

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HINT: assets, dividends & expenses increase in debit, liabilities, equity & revenue in credit 1. Purchased $10,000 of stuff we intend to resell and paid cash 2. Issued $100,000 of common stock 3. Paid the rent for the month of $2,000 4. Received the phone bill of $500 but DID NOT pay it yet 5. Purchased $5,000, on account, of stuff we intend to resell 6. Borrowed $5,000 from the local bank @ 7% for 3 years 7. Paid $2,000 of dividends 8. Sold $4,000 of stuff to a customer on account (cost us $1,000)
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Unformatted text preview: 9. Purchased $500 of office supplies on account 10. Collected the money from the sale in # 11. Paid the phone bill from #4 12. Purchased a piece of equipment (Caterpillar of course) for $12,000 cash **If you are a service firm, when you provide a service, it is service revenue or sales to you** a.) Prepare journal entries for the above transactions. b.) Prepare t-accounts for each account c.) Prepare a post closing trial balance Journal Entries Examples...
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