Question

Balance Sheet Income Statement Cash Asset Noncash Assets Liabil- ities Contrib. Earned Revenues ExpensesIncome CapitalCapital Net Transaction (1) Receive $20,000 cash in exchange for common stock (2) Purchase $2,000 of (3) Sell inventory 4) Record $2,000 for cost 5) Collect $3,000 cash (6) Acquire $5,000 of inventory on credit for $3,000 on credit. of inventory sold in 3. from transaction 3 equipment by signing a note (7) Pay wages of $1,000 in (8) Pay $5,000 on a note (9) Pay $2,000 cash. payable that came due. cash dividend. Totals E2-48. Recording Transactions Using Journal Entries and T-Accounts Use the information in Exercise 2-47 to complete the following a. Prepare journal entries for each of the transactions 1 through9 b. Set up T-accounts for each of the accounts used in part a and post the journal entries to those LO6 МЕЗС T-accounts. (The T-accounts will not have opening balances.)

Answer 1

Ans.(1)	Journal Entries
	S.No.	Accounts and Titles			Dr.(Amt.)	Cr.(Amt.)
	1)	Cash			20000
		To Common Stock				20000
	2)	Inventory			2000
		To Account Payable				2000
	3)	Account Receivable			3000
		To Sales				3000
	4)	COGS			2000
		To Inventory				2000
	5)	Cash			3000
		To Accounts Receivable				3000
	6)	Equipment			5000
		To Note Payable				5000
	7)	Wages Expense			1000
		To Cash				1000
	8)	Note Payable			5000
		To Cash				5000
	9)	Dividend			2000
		To Cash				2000
Ans.(2)	Cash A/c
			Amt.($)			Amt.($)
	To Common Stock		20000	By Wages		1000
	To Account Receivable		3000	By Note Payable		5000
				By Dividend		2000
				By Balance c/d		15000
			23000			23000
	Common Stock A/c
			Amt.($)			Amt.($)
	By Balance c/d		20000	By Cash		20000
			20000			20000
	Inventory A/c
			Amt.($)			Amt.($)
	To Accounts Payable		2000	By COGS		2000
			2000			2000
	Accounts Payable A/c
			Amt.($)			Amt.($)
	By Balance c/d		2000	By Inventory		2000
			2000			2000
	Account Receivable A/c
			Amt.($)			Amt.($)
	To Sales		3000	By Cash		3000
			3000			3000
	Sales A/c
			Amt.($)			Amt.($)
	To COGS		2000	By Account Receivable		3000
	To P&L		1000
			3000			3000
	COGS A/c
			Amt.($)			Amt.($)
	To Inventory		2000	By Sales		2000
			2000			2000
	Equipment A/c
			Amt.($)			Amt.($)
	To note Payable		5000	By Balance c/d		5000
			5000			5000
	Note Payable A/c
			Amt.($)			Amt.($)
	to Cash		5000	By Equipment		5000
			5000			5000
	Wages A/c
			Amt.($)			Amt.($)
	To Cash		1000	By P&L		1000
			1000			1000
	Dividend A/c
			Amt.($)			Amt.($)
	To Cash		2000	By P&L		2000
			2000			2000