Use the information in Exercise 2-47 to complete the following.

a. Prepare journal entries for each of the transactions 1 through 9.

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.)

Data from  Exercise 2-47:

Transcribed Image Text:

Balance Sheet Income Statement Earned Capital Net Expenses = income Cash Noncash Liabil- Contrib. Revenues - Transaction Asset Assets ities Capital (1) Receive $20,000 cash in exchange for common stock, (2) Purchase $2,000 of inventory on credit. %D %3D (3) Sell inventory for $3,000 on credit. (4) Record $2,000 for cost of inventory sold in 3. (5) Collect $3,000 cash from trensaction 3. %D %3D (6) Acquire $5,000 of equipment by signing a note. (7) Pay wages of $1,000 in cash. %D (8) Pay $5,000 on a note payable that came due. (9) Pay $2.000 cash dividend. Activate Wine Totals to Settings to II I ||