the owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock. The company's $17,350 equipment purchase is paid in cash. The accounts payable balance of $7,970 consists of the $2,720 office supplies purchase and $5,250 in employee salaries yet to be paid. The company's rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $13,320 consulting fees earned.

Question

Business

Claire Newman

26 April, 04:45

the owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock. The company's $17,350 equipment purchase is paid in cash. The accounts payable balance of $7,970 consists of the $2,720 office supplies purchase and $5,250 in employee salaries yet to be paid. The company's rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $13,320 consulting fees earned.

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Answers (1)

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Danika Long · Answer 1

What the question asks is to journalize the transactions.

Explanation:

The owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock.

Account Debit Credit

Cash $37,480

Land $45,910

Common Stock $83,390

The company's $17,350 equipment purchase is paid in cash.

Account Debit Credit

Equipment $17,350

Cash $17,350

The accounts payable balance of $7,970 consists of the $2,720 office supplies purchase and $5,250 in employee salaries yet to be paid.

Account Debit Credit

Office Supplies $2,720

Accounts Payable $2,720

Wages Expense $5,250

Wages Payable $5,250

No cash has been collected on the $13,320 consulting fees earned.

Account Debit Credit

Accrued Revenue $13,320

Fees Revenue $13,320