(TCOs E and F) Please prepare the following journal entries. Indicate which acco

Question

(TCOs E and F) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit (1) Investors invest $500,000 in exchange for 50,000 shares of common stock (2) Company purchased equipment for $25,000 on account (3) Company paid Rent for $4,000 (4) Company received $15,000 for services not yet performed (5) Employees work Monday through Ftiday and are paid on Friday Salary expense is $10,000 per day and this year, December 31 falls on a Wednesday

Explanation / Answer

1) cash account debit and common stock account credit

2) equipment account debit and payables to suppliers account credited

3) Rent account debit and cash account credit

4) cash account debit and unearned revenue account credit

5) salary expense account debit and salary payable account credit

Salary payable will include 3 days of unpaid salary =10000*3= 30000

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