The Mello Company was recently started and had the following transactions: A. Owner's invest $8,000 in the company B. Purchased $1,625 of equipment C. Purchased $4,000 of inventory D. Borrowed $1,200 from a bank E. Paid $750 rent on office space F. Paid $800 in dividends G. Paid $1,860 in employee payroll H. Sold 1/4 of inventory for a total of $3,120 I. Made $150 payment on bank loan

Question

Business

Lam

7 June, 14:55

The Mello Company was recently started and had the following transactions: A. Owner's invest $8,000 in the company B. Purchased $1,625 of equipment C. Purchased $4,000 of inventory D. Borrowed $1,200 from a bank E. Paid $750 rent on office space F. Paid $800 in dividends G. Paid $1,860 in employee payroll H. Sold 1/4 of inventory for a total of $3,120 I. Made $150 payment on bank loan

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Answers (1)

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Barbara Oconnor · Answer 1

The transactions in the question seems requiring for the journal entries. You can find them below.

Explanation:

Transaction A:

Debit: Cash $8,000

Credit: Capital $8,000

Transaction B:

Debit: Equipment $1,625

Credit: Cash/Bank $1,625

Transaction C:

Debit Purchases - Inventory: $4,000

Credit Cash/Bank: $4,000

Transaction D:

Debit: Bank $1,200

Credit: Bank loan $1,200

Transaction E:

Debit: Rent expense $750

Credit: Cash/Bank $750

Transaction F:

Debit: Dividend expense $800

Credit: Cash/Bank $800

Transaction G:

Debit: Employee payroll - wages expense $1,860

Credit: Cash/Bank $1,860

Transaction H:

Debit: Cash/Bank $3,120

Credit: Sales $3,120

Transaction I:

Debit: Bank loan $150

Credit: Cash/Bank $150