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

ID: 2374154 • 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 4


Advertising was purchased on open account for $2,500 from a newspaper owned by one of the stockholders; additional advertising services of $7,000 were acquired for cash. [Note: Combine both transactions into one entry].


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

Account: Cash Dollar amount: -7000

Account: Accounts Payable Dollar amount:    2500

Account: Retained Earnings Dollar amount: -9500   

Account:             Dollar amount:   

Account:             Dollar amount: