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27 June, 01:26

Issued stock for $6 cash (example).

b. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.

c. Paid $513 in principal and $91 in interest expense on long-term debt.

d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.

e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.

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  1. 27 June, 01:53
    0
    Cash ... DR $6

    To Common Stock ... $6

    (Being Shares issued for cash)

    Equipment ... DR $6320

    To Cash ... $4893

    To Accounts Payable ... $1427

    (Being Equipment Purchased partly for cash and partly on credit)

    Long Term Debt ... $513

    Interest Expense ... $91

    To Cash ... $604

    (Being Loan Installment repaid)

    Cash ... DR $87949

    Accounts Receivable ... DR $1039

    To Sales ... $ 88988

    (Being sales made partly in cash and partly on credit)

    Shipping Expense ... DR $10766

    To Accounts Payable ... $10766

    (Being Shipping Expenses Incurred)

    Accounts Payable ... DR $28241

    to Cash ... $28241

    (Being Accounts Payables Paid off)

    Marketing Expenses ... DR $4332

    To Cash ... $4332

    (Being Marketing Expenses incurred)

    Cash ... DR $620

    To Accounts Receivable ... $620

    (Being Accounts Receivables Paid off)

    Cash ... DR $6359

    To Long term Debt ... $6359

    (Being Long Term Debt Borrowed)

    Cost of Goods Sold ... DR $62752

    To Merchandise Inventory ... $62752

    (Being Cost of Goods sold Recorded)

    Income tax Payable ... DR $177

    To Cash ... $177

    (Being Tax Payable Paid off)
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