A8 (Understanding entries) This question tests your ability to understand accounting entries. Each of the following is a typical journal entry, made either to record a transaction, or to adjust the books at the end of the month. Your task is to explain what the function of the entry is, and what event it is recording. For example, is it recording a sale for cash? a. Dr. dividends 10,000 10,000 b. Dr. Inventory 47,200 47,200 Cr. Cash Cr. Accounts payable
A8 (Understanding entries) This question tests your ability to understand accounting entries. Each of the following is a typical journal entry, made either to record a transaction, or to adjust the books at the end of the month. Your task is to explain what the function of the entry is, and what event it is recording. For example, is it recording a sale for cash? a. Dr. dividends 10,000 10,000 b. Dr. Inventory 47,200 47,200 Cr. Cash Cr. Accounts payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A8 (Understanding entries) This question tests your ability to understand accounting
entries. Each of the following is a typical journal entry, made either to record a
transaction, or to adjust the books at the end of the month. Your task is to explain what
the function of the entry is, and what event it is recording. For example, is it recording a
sale for cash?
a. Dr. dividends
10,000
10,000
b. Dr. Inventory
47,200
47,200
Cr. Cash
Cr. Accounts payable
Transcribed Image Text:c. Dr. Accounts receivable
Dr. Cost of goods sold
Cr. Sales
Cr. Inventory
d. Dr. Prepaid rent
Cr. Cash
e. Dr. Income tax expense
f. Dr. Interest receivable
9,000
6,000
6,000
132,000
Cr. Income taxes payable
4,200
Cr. Interest revenue
9,000
6,000
6,000
132,000
4,200
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