Prepare Journal Entries for Each of the Following Transactions

question 88

Essay

Prepare journal entries for each of the following transactions.
1. Performed services for customers on account $8,000.
2. Purchased $20,000 of equipment on account.
3. Received $3,000 from customers in transaction 1.
4. The company paid dividends of $2,000.

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Definitions:

Doctrine of Necessaries

Legal principle holding a spouse responsible for providing the necessary expenses of the family, like food, shelter, and medical care.

Disaffirm

The legal act of rejecting or voiding a contract or agreement, especially by a party who was not at full capacity when the agreement was made.

Property

Refers to legally recognized ownership of resources such as land, buildings, goods, or intellectual property.

Understand

The ability to grasp the meaning, significance, or nature of something.