Listed below are the transactions for Katherine Company:
1.The owners invest $80,000 in the company.
2.The company purchases equipment costing $16,000.They paid $6,000 cash and settled the remainder with a note payable.
3.The company purchases inventory costing $9,600 by paying $4,200 cash and putting the remainder on account.
4.The company paid $7,200 for four months rent in advance.
5.The company sold inventory for $8,700 cash.The cost of the inventory was $5,000.
6.The company used one month of rent.
7.The company declared a cash dividend of $500.
8.Depreciation expense on the equipment was $400 for the month.
Required:
Prepare journal entries for the above transactions.

Question

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The Answer of Listed below are the transactions for Katherine Company:
1.The owners invest $80,000 in the company.
2.The company purchases equipment costing $16,000.They paid $6,000 cash and settled the remainder with a note payable.
3.The company purchases inventory costing $9,600 by paying $4,200 cash and putting the remainder on account.
4.The company paid $7,200 for four months rent in advance.
5.The company sold inventory for $8,700 cash.The cost of the inventory was $5,000.
6.The company used one month of rent.
7.The company declared a cash dividend of $500.
8.Depreciation expense on the equipment was $400 for the month.
Required:
Prepare journal entries for the above transactions.

Listed Below Are the Transactions for Katherine Company