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fill out the following journal entries for Part 2 and provide explanations

fill out the following journal entries for Part 2 and provide explanations

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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fill out the following journal entries for Part 2 and provide explanations
PART 2 - Record journal entries for each of the following transactions for Company ABC. December 2: Company ABC issues common stock in exchange for $5,000 cash. Date Account Debit Credit December 8: Company ABC decided to purchase land to use in their business operations. The land was paid for in cash for $100,000. Date Account Debit Credit December 15: Company ABC received the November utility bill and the accounting department will pay it next month. The bill was for $250. Date Account Debit Credit December 20: Company ABC received $20,000 from a customer and promises to perform their services on December 23. Date Account Debit Credit December 23: Company ABC fulfills their promise to service their customer referred to on Dec. 20. Date Account Debit Credit December 29: Company ABC pays shareholders a cash dividend of $2,000. Date Account Debit Credit
Transcribed Image Text:PART 2 - Record journal entries for each of the following transactions for Company ABC. December 2: Company ABC issues common stock in exchange for $5,000 cash. Date Account Debit Credit December 8: Company ABC decided to purchase land to use in their business operations. The land was paid for in cash for $100,000. Date Account Debit Credit December 15: Company ABC received the November utility bill and the accounting department will pay it next month. The bill was for $250. Date Account Debit Credit December 20: Company ABC received $20,000 from a customer and promises to perform their services on December 23. Date Account Debit Credit December 23: Company ABC fulfills their promise to service their customer referred to on Dec. 20. Date Account Debit Credit December 29: Company ABC pays shareholders a cash dividend of $2,000. Date Account Debit Credit
Expert Solution
Step 1

The journal entries are first step to record a transaction in the accounting process. Each transaction must have impact on atleast two accounts.

All the journal entries for the transactions given have been recorded and explained in Step 2.

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