Prepare Journal Entries for Each of the Following Transactions

question 51

Essay

Prepare journal entries for each of the following transactions.
1. Performed services for customers on account $8400.
2. Purchased $20000 of equipment on account.
3. Received $3800 from customers in transaction 1.
4. The owner J. Dean withdrew $2900 cash for personal use.

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Definitions:

Weighted Average Cost

A financial metric that calculates the average price of various sources of capital (debt, equity, etc.), weighted by their respective use in the financing mix of a company.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often calculated using models like the Capital Asset Pricing Model (CAPM).

After-tax Cost

The expense of an action or transaction after considering the impact of taxes.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.