Prepare journal entries to record the following transactions:
(a.) Purchased $12,500 of inventory on account.
(b.) Paid $1,800 for office supplies.
(c.) Performed a service and immediately collected $600.
(d.) Paid the monthly rent, $1,150.
(e.) Paid twenty percent of the amount owed for the inventory purchased in (a) above.
(f.) Sold products for $8,000 on account that cost $4,500.
(g.) Borrowed $12,000 by signing a note payable.
(h.) Received the amount owed from the customer of (f) above.

Question

Prepare journal entries to record the following transactions:
(a.)  Purchased $12,500 of inventory on account.
(b.)  Paid $1,800 for office supplies.
(c.)  Performed a service and immediately collected $600.
(d.)  Paid the monthly rent, $1,150.
(e.)  Paid twenty percent of the amount owed for the inventory purchased in (a) above.
(f.)  Sold products for $8,000 on account that cost $4,500.
(g.)  Borrowed $12,000 by signing a note payable.
(h.)  Received the amount owed from the customer of (f) above.

Quizplus · Accepted Answer

The Answer of Prepare journal entries to record the following transactions:
(a.)  Purchased $12,500 of inventory on account.
(b.)  Paid $1,800 for office supplies.
(c.)  Performed a service and immediately collected $600.
(d.)  Paid the monthly rent, $1,150.
(e.)  Paid twenty percent of the amount owed for the inventory purchased in (a) above.
(f.)  Sold products for $8,000 on account that cost $4,500.
(g.)  Borrowed $12,000 by signing a note payable.
(h.)  Received the amount owed from the customer of (f) above.

Prepare Journal Entries to Record the Following Transactions