Transactions are first journalized and then posted to ledger accounts. In this exercise, however, your understanding of the relationship between the journal and the ledger is tested by asking you to study some ledger accounts and determine the journal entries that probably were made to produce these ledger entries. The following accounts show the first six transactions of Avenson Insurance Company. Prepare a journal entry (including a written explanation) for eachtransaction.
Answer to relevant QuestionsUsing the information in the ledger accounts presented in Exercise 3.3, prepare a trial balance for Avenson Insurance Company dated November 30.Listed below are eight transactions the Foster Corporation made during November:Issued stock in exchange for cash. Purchased land. Made partial payment with cash and issued a note payable for the remaining balance.Recorded ...Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions during February while the company was being organized are listed below. Feb. 1 Grimes and ...Chris North is the founder and president of North Enterprises, a real estate development venture. The business transactions during April while the company was being organized are listed below.Apr. 1 North and several others ...Kim Morris purchased Print Shop, Inc., a printing business, from Chris Stanley. Morris made a cash down payment and agreed to make annual payments equal to 40 percent of the company’s net income in each of the next three ...
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