Recording Transactions Using Journal Entries and T-Accounts (1) Receive $80,000 cash in exchange for common stock....

 

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Recording Transactions Using Journal Entries and T-Accounts (1) Receive $80,000 cash in exchange for common stock. (2) Purchase $8,000 of inventory on credit. (3) Sell inventory for $12,000 on credit. (4) Record $8,000 for cost of inventory sold in transaction 3. (5) Collect $12,000 cash from transaction 3. (6) Acquire $20,000 of equipment by signing a note. (7) Pay wages of $4,000 in cash. (8) Pay $20,000 on a note payable that came due. 19) Pay $8,000 cash dividend. Use the information above to complete the following. a. Prepare journal entries for each of the transactions 1 through 9. Module b. Set up T-accounts for each of the accounts used in part a and post the journal entries to those T-accounts. (The T-accounts will not have opening balances.) Recording Transactions Using Journal Entries and T-Accounts (1) Receive $80,000 cash in exchange for common stock. (2) Purchase $8,000 of inventory on credit. (3) Sell inventory for $12,000 on credit. (4) Record $8,000 for cost of inventory sold in transaction 3. (5) Collect $12,000 cash from transaction 3. (6) Acquire $20,000 of equipment by signing a note. (7) Pay wages of $4,000 in cash. (8) Pay $20,000 on a note payable that came due. 19) Pay $8,000 cash dividend. Use the information above to complete the following. a. Prepare journal entries for each of the transactions 1 through 9. Module b. Set up T-accounts for each of the accounts used in part a and post the journal entries to those T-accounts. (The T-accounts will not have opening balances.)

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Journal Entries 1 Receive 80000 cash in exchange for common stock Cash 80000 Common Stock 80000 2 Pu... View the full answer