Journalize the Following Transactions

question 66

Essay

Journalize the following transactions. You may omit the explanations and disregard the posting
reference.
A. Rick invested $21,500 into his company, Rick's Fishing, on January 11.
B. The company purchased $2,900 of furniture for cash on February 3.
C. The company paid three month's rent of $2250 and recorded it as a prepaid expense on February 9.
D. The company bought $2,300 of office fixtures and $6,200 of stock bins for $7,000 cash and the balance
on account dated March 9.
E. The company receives payment of $575 of from a customer on her bill. This transaction was on
March 12.

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Definitions:

Initial Franchise Fee

A one-time charge that a new franchisee pays to the franchiser for the rights to operate a franchise, covering initial training, support, and access to the business model.

Material Services

Significant or essential services provided that contribute directly to the output of the production process or operational efficiency.

Franchisor

An entity that grants the right to use a brand, product, or operational model to an individual or entity (franchisee), typically for a fee.

Bundled Sales

The practice of selling multiple products or services together as a single combined offering, often at a discounted rate.