Answer:
*Made cash sales of $51,400 (example)
1. Purchased $3,250 of additional supplies on account.
2. Borrowed $59,000 on long-term notes.
3. Purchased $23,600 in additional equipment, paying in cash.
4. Incurred $39,150 in selling expenses, paying two-thirds in cash and owing the rest on account.
5. Paid $4,750 in rent for this month, and also paid $4,750 for next month?
SR. Asset = Equity + Liability
* Cash+51,400 Sales+51,400 No Entry
1. Supplies+3,250 No Entry Account Payable+3250
2. Cash+59,000 No Entry Note Payable+59,000
3. Cash-23,600 No Entry No Entry
Equipment+23,600
4. Cash-26,100 Selling Expense-39150 Account Payable+13,050
5. Cash-9,500 Rent Expense-4,750 No Entry
Prepaid rent+4750
Explanation:
* A similar question is attached with this answer. Please find that.
Working:
(4) $39,150 x 2/3 = $26,100
