Business, 10.03.2020 02:37 HourlongNine342

Acquired $18,500 cash from the issue of common stock. Purchased inventory for $7,000 cash. Sold inventory costing $4,200 for $7,140 cash. Paid $850 for advertising expense. Required. Record the general journal entries for the preceding transactions. b. Post each of the entries to T-accounts. c. Prepare a trial balance to prove the equality of debits and credits.

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Answer from: joslynndiggs

Explanation:

Entries

On the issuance of stock

Cash18500

Share capital18500

On purchase of inventory

Stock 7000

Cash7000

On the disposal of inventory

Cash7140

inventory4200

Gain On disposal2940

Advetisement Expense

Expense 850

Cash850

T-Accounts

Cash and Bank

Opening0

Share capital18500 Stock7000

Sale7140 Adv. Expense850

Closing17790

Stock

Opening0

Cash7000 Cash Sale4200

Closing2800

Share Capital

opening0

Cash 18500

Closing18500

Gain On disposal

opening0

Cash 2940

Closing2940

Advetisement Expense

Opening0

Cash850 profit and loss850

Closing 0

the trail balance is prepared at end of reporting to reconcile the closing debit credit during the year occurred on transactions. closing balace are put in according to their nature such as liability and equity account is credit nature account and asset and expense is debit nature account as prepared below

Trail Balance

Particular Debit Credit

Cash 17790

Stock 2800

Share Capital 18500

Gain 2940

Advvertisement850

Closing Balance2144021440

Answer from: Quest

answer; /// (b) i believe its that is paid to state and federal taxing authorities;

Answer from: Quest

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Acquired $18,500 cash from the issue of common stock. Purchased inventory for $7,000 cash. Sold inve...

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