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($) Credit($) February 1 Rent expense (+E) (-SE) 275 Cash (-A) 275 (To record the payment of rent expenses) February 2 Fuel expense (+E) (-SE) 490 Accounts payable (+L) 490 (To record the fuel expense) February 4 Cash (+A) 820 Unearned revenue (+L) 820 (To record the unearned revenue) February 7 Cash (+A) 910 Transport revenue (+L) 910 (To record the transport revenue) February 10 Advertising expense (+E) (-SE) 175 Cash (-A) 175 (To record the advertising expense) February 14 Wages payable (-L) 2,300 Cash (-A) 2,300 (To record the wages payable) February 18 Cash (+A) 1,600 Accounts receivable (+A) 2,200 Transport revenue (+R) (+SE) 3,800 (To record the transport revenue) February 25 Parts supplies (+A) 2,250 Accounts payable (+L) 2,250 (To record the purchase of parts supplies on account ) February 27 Retained earnings (-SE) 200 Dividends payable (+L) 200 (To record the declaration of dividend that is to be paid in March) Table (1) February 1: Rent expense is an expense account which is a component of stockholders’ equity. There is an increase in the expense account which decreases the stockholders’ equity...

16th Edition

ISBN: 9781308821672

Author: Libby

Publisher: MCG/CREATE

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Chapter 3, Problem 3.9E

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Prepare the journal entries for Incorporation BATS.

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Chapter 3 Solutions

FINANCIAL ACCOUNTING 9TH

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Prepare the journal entries for Incorporation BATS.

Solution Summary: The author explains journal entries for Incorporation BATS. Journal records the debit and credit aspects of each transaction to adhere to the double-entry system.

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Chapter 3 Solutions