Record the Following Selected Transactions for January in a Two-Column

question 4

Essay

Record the following selected transactions for January in a two-column journal, identifying each entry by letter:
(a) Earned $8,000 fees on account.
(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit.
(c) Paid $3,000 for rent for January.
(d) Purchased $2,500 of supplies on account.
(e) A. Allen $2,000 investment in the company.
(f) Received $7,000 in cash for fees earned previously.
(g) Paid $1,200 to creditors on account.
(h) Paid wages of $6,250.
(i) Received $7,150 from customers on account.
(j) A. Allen withdrawal of $1,750.

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Definitions:

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to investors.

Net Capital Outflow

The difference between a nation's total investment in foreign countries and foreign investments within the nation, over a specified period of time.

Loanable Funds

The Loanable Funds market is a conceptual framework where savers supply funds to borrowers, determining the equilibrium interest rate.

Net Capital Outflow

The difference between the domestic country's purchases of foreign assets and foreign purchases of the domestic country’s assets for a certain period.