Prepare Journal Entries to Record the Following Transactions

question 21

Essay

Prepare journal entries to record the following transactions:
(a.) Purchased $12,500 of inventory on account.
(b.) Paid $1,800 for office supplies.
(c.) Performed a service and immediately collected $600.
(d.) Paid the monthly rent, $1,150.
(e.) Paid twenty percent of the amount owed for the inventory purchased in (a) above.
(f.) Sold products for $8,000 on account that cost $4,500.
(g.) Borrowed $12,000 by signing a note payable.
(h.) Received the amount owed from the customer of (f) above.

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Definitions:

Credential Inflation

The increasing demand for higher educational qualifications for jobs that previously required lower qualifications, often leading to over-qualification.

Certificates and Diplomas

Formal documents issued by educational institutions or professional organizations certifying completion of a course of study or qualification.

Stand and Deliver

A phrase often used to demand that someone stops and submits to the speaker's demands, popularly known due to its historical context in robbery but also the title of a film about an inspiring high school teacher.

Self-Fulfilling Prophecies

A phenomenon where a belief or expectation, correct or incorrect, affects a person's behavior in such a way that it influences the outcome to conform to the prediction.