Question

The first even transactions of Everett Advertising, Inc., have been posted to the company's accounts: Ce the icon to view the accounts.) Requirement 1. Prepare the journal entries that served as the sources for the seven transactions. Include an explanation for each entry. Determine the ending balance in each account. As Everett moves into the next period, how much cash does the business have? How much does Everett owe inal liabilities? Begin by recording the journal arts start with transaction (1) Record debits first, then credits 0 Data Table Journal Entry Accounts and Explanations Debit Credi los 10 cm ww w w stanta 300/ 8.000 (0) c) 220 3,500 Now record the journal entry for transaction (2) Common Stock Journal Entry Nathan forti Choose from any list or enter any number in the input neds and then continue to the next question

Answer 1

1) Collected cash in exchange for common stock $8,900. The first seven transactions of Everett Advertising, Inc., have been posted to the company's accounts: em Click the icon to view the accounts.) Requirement 1. Prepare the journal entries that served as the sources for the seven transactions. Include an explanation for each entry. Determine the ending balance in each account. As Everett moves into the next period, how much cash does the business have? How much does Everett owe in total abilities? 2) Borrowed cash through issuing note payable $8,000. 3) Supplies purchased on account $500 Begin by recording the journal entries, start with transaction (1). (Record debits first, then credits Journal Entry 0 Data Table Accounts and Explanations Debit Credit La Et 4) Purchased land for $36,000 by paying cash $4,000 & issuing note payable for the remaining amoung of $32,000. Supplies o () 1 .000 Cash 8.500 8,000 ) (1) (2) (5) 3.500 4000 220 3,500 5) Supplies were sold for cash $90. Now record the journal entry for transaction (2) Nos Payable Common Stock Accounts Payable 2200) Journal Entry 500 2) J) 8.000 32.000 Accounts and Explanations De Credit 6) Cash paid on account (to accounts payable) $220. Print Dono 7) Equipment was purchased for cash $3,500. No t hinumant for treation Explanation: Choose from any list or enter any number in the input fields and then continue to the next question 1) Debit in Cash account represents cash collection; Corresponding credit in Common Stock account represents cash collected by firm through issuing common stock for the same.

2) Debit in Cash account represents cash collection; Corresponding credit in Note Payable account represents cash borrowed by firm through issuing note payable for the same. 3) Debit in Supplies account represents supplies purchased by firm; Corresponding credit in Accounts Payable account represents, supplies were purchased on account and bill will be paid later. 4) Debit in Land account represents land purchased by firm; Corresponding part credit in Cash account represents cash paid partially; Corresponding part credit in Note Payable account represents, land was purchased by issuing note payable for the balance amount which will be paid later. 5) Debit in Cash account represents cash collection; Corresponding credit in Supplies account represents supplies were sold for cash. 6) Debit in Accounts Payable account represents that vendor's claim from firm is decreased; Corresponding credit in Cash account represents, vendor bill is settled by firm by cash. 7) Debit in Equipment account represents equipment purchased by firm; Corresponding credit in Cash account represents, equipment was purchased by paying cash for the same.