Chapter 2, Problem 7GLP

To determine

Journal Entry:

Journal entry is a medium of recording the business transactions carried during a particular accounting period.

Four Column Accounts:

The four column accounts keeps track of the balance as transactions takes place. In case of assets and expense accounts, the increase in the expenses and assets are shown in the debit column and vice-versa. When there is increase in liabilities and revenues, it is shown on the credit side and vice-versa.

Income Statement:

The statement which shows the revenues earned and expenses incurred during a particular year is called Income statement.

Statement of Owner's Equity:

Statement of owner's equity is concerned with portion of owner's equity.

Balance Sheet:

A financial statement which shows the financial position of a company during specified accounting period is called a balance sheet.

Prepare journal entries to record the transactions, create financial statements, and assess the impact of each transaction on financial statements.