Question

Net income, assuming that no dividends were paid E2-4A. Transaction Analysis The accounts below are from the general ledger of The Bast Company. For LO2,5 each letter given in the T-accounts, describe the type of business transaction(s) or event(s) that would most likely be reflected by entries on that side of the account. For example, the answer to (a) is amounts for services performed for clients on account. Accounts Receivable Notes Payable Office Equipment Professional Fees Earned Common Stock Accounts Payable 0 Dividends Wage Expense

Answer 1

a)Amount of service performed on account
b)Received the money for the goods sold on account
c)Purchased goods by issuing note
d)Purchased office equipment by cash/on account
e)Paid for the goods purchased on account
f)purchased goods on account
g)Performed services for the client
h)paid dividends for the year
i)Issued common stock
j) Incuured wages for the month to employees