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Three former college classmates have decided to pool a variety of work experienc

ID: 2374152 • Letter: T

Question

Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.


Transaction 2


The corporation quickly acquired $38,000 in inventory, 40% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.


Account:             Dollar amount:   


Account:             Dollar amount:   


Account:             Dollar amount:   


Account:             Dollar amount:   


Account:             Dollar amount:   


For account parts, you should choose from options below:

Cash,
Accounts Receivable,
Inventory,
Prepaid Rent,
Fixtures and equipments,

Accounts Payable,
Interest Payable,
Wages Payable,
Notes Payable,
Paid-in Capital,
Retained Earnings,
Leave Bank

Explanation / Answer

inventory a/c dr. 38000

to cash a/c 22800

to accounts payablesa/c 15200