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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do an accounting
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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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