Part II: Basic accounting entries (26 points) Provide journal entries for each of the following transactions....

Transcribed Image Text:

Part II: Basic accounting entries (26 points) Provide journal entries for each of the following transactions. Date each journal entry, providing the impact of each account debited and credited to A/L/NI indicating increase (1) or decrease (↓). 1. On 7/1, a company purchases $10,000 of inventory on credit. On 7/10 the company sells the inventory for $25,000 with 80% of the customers paying cash and 20% paying on credit terms. (9 points) 2. On 3/1 a company spends $55,000 cash on insurance premiums that will cover its operations for two years. (5 points) 3. On 12/1 an apartment company collects rent from its tenants for the month of December in the amount of $120,000. (5 points) 4. On 1/1 a company purchases equipment paying $150,000 and issuing a note that it will years for $500,000. (7 points) pay in two Part II: Basic accounting entries (26 points) Provide journal entries for each of the following transactions. Date each journal entry, providing the impact of each account debited and credited to A/L/NI indicating increase (1) or decrease (↓). 1. On 7/1, a company purchases $10,000 of inventory on credit. On 7/10 the company sells the inventory for $25,000 with 80% of the customers paying cash and 20% paying on credit terms. (9 points) 2. On 3/1 a company spends $55,000 cash on insurance premiums that will cover its operations for two years. (5 points) 3. On 12/1 an apartment company collects rent from its tenants for the month of December in the amount of $120,000. (5 points) 4. On 1/1 a company purchases equipment paying $150,000 and issuing a note that it will years for $500,000. (7 points) pay in two

Answer rating: 100% (QA)

The image displays a homework or test question from a course in accounting The assignment is to make basic accounting entries for a series of transact... View the full answer