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The following amounts summarize the financial position of Little White Dog Inc. on May 31, 202X Cash + Balance 3120 Accounts Receivable 1200 Assets Computers (net) 0 Liabilities + Supplies + Land = 14400 9600 Accounts Payable 120 Note Payable 0 Salaries Interest Payable Payable 0 0 + Shareholders' Equity Retained Earnings Common Shares 4800 4440 During June 202X, the business completed these transactions: June 1: Received a cash investment totalling $6000 in exchange for common shares. June 1: Purchased three computers. The company paid $2100 in cash and took out a bank loan of $7500 to cover the remaining balance owing. The loan bears interest of 10% to be paid on February 1, next year. The computers are expected to last 3 years.

The following amounts summarize the financial position of Little White Dog Inc. on May 31, 202X Cash + Balance 3120 Accounts Receivable 1200 Assets Computers (net) 0 Liabilities + Supplies + Land = 14400 9600 Accounts Payable 120 Note Payable 0 Salaries Interest Payable Payable 0 0 + Shareholders' Equity Retained Earnings Common Shares 4800 4440 During June 202X, the business completed these transactions: June 1: Received a cash investment totalling $6000 in exchange for common shares. June 1: Purchased three computers. The company paid $2100 in cash and took out a bank loan of $7500 to cover the remaining balance owing. The loan bears interest of 10% to be paid on February 1, next year. The computers are expected to last 3 years.

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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Please do an accounting journal entry for these three

June 30: Paid $1440 for an advertising campaign that had been run during the month. Employee salaries were also accrued. Employees work 5 days each week and are paid $5000 in total every other Friday. The month ended on a Wednesday. Employees were last paid 2 weeks ago.
Transcribed Image Text:June 30: Paid $1440 for an advertising campaign that had been run during the month. Employee salaries were also accrued. Employees work 5 days each week and are paid $5000 in total every other Friday. The month ended on a Wednesday. Employees were last paid 2 weeks ago.
The following amounts summarize the financial position of Little White Dog Inc. on May 31, 202X Cash + Balance 3120 Accounts Receivable 1200 Assets Computers (net) 0 + Supplies 120 Liabilities Accounts Payable 14400 9600 + Land = Note Salaries Interest Payable Payable Payable 0 0 During June 202X, the business completed these transactions: June 1: Received a cash investment totalling $6000 in exchange for common shares. + + + Shareholders' Equity Retained Earnings 4440 Common Shares 4800 June 1: Purchased three computers. The company paid $2100 in cash and took out a bank loan of $7500 to cover the remaining balance owing. The loan bears interest of 10% to be paid on February 1, next year. The computers are expected to last 3 years.
Transcribed Image Text:The following amounts summarize the financial position of Little White Dog Inc. on May 31, 202X Cash + Balance 3120 Accounts Receivable 1200 Assets Computers (net) 0 + Supplies 120 Liabilities Accounts Payable 14400 9600 + Land = Note Salaries Interest Payable Payable Payable 0 0 During June 202X, the business completed these transactions: June 1: Received a cash investment totalling $6000 in exchange for common shares. + + + Shareholders' Equity Retained Earnings 4440 Common Shares 4800 June 1: Purchased three computers. The company paid $2100 in cash and took out a bank loan of $7500 to cover the remaining balance owing. The loan bears interest of 10% to be paid on February 1, next year. The computers are expected to last 3 years.
Expert Solution
Step 1: Understanding of journal entry

Lets understand the basics.

A journal entry is a form of accounting entry that is used to report a business transaction in a company's accounting records.

It is a first step of recording transaction or event in books of account.  After this step, posting of journal entry, preparation of trial balance, income statement and statement of financial position gets made. 

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