Explanation Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system. Prepare the journal entries: Date Account Title and Explanation Debit($) Credit($) a Accounts receivable (+A) 23,500 Service revenue (+R) (SE) 23,500 (To record the service revenue) b Accounts payable (-L) 3,005 Cash (-A) 3,005 (To record the accounts payable) c Supplies (+A) 2,600 Accounts payable (+L) 2,600 (To record the purchase of supplies on account) d Equipment (+A) 3,800 Cash (-A) 3,800 (To record the purchase of equipment) e Advertising expenses (+E) (-SE) 1,400 Cash (-A) 1,400 (To record the advertising expenses) f Wages expenses (+E) (-SE) 8,100 Wages payable (-L) 3,800 Cash (-A) 11,900 (To record the wages expenses) g Cash (+A) (1) 135,000 Common stock (+SE) (2) 1,500 Additional paid-in capital (+SE) (3) 133,500 (To record the issuance of common stock) h Cash (+A) 12,500 Accounts receivable (+A) 12,500 (To record the c...

8th Edition

ISBN: 9780078025556

Author: Robert Libby, Patricia Libby, Daniel Short

Publisher: McGraw-Hill Education

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Prepare the journal entries for Incorporation TP.

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Financial Accounting, 8th Edition

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Prepare the journal entries for Incorporation TP.

Solution Summary: The author explains the journal method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

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Prepare the journal entries for Incorporation TP.

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