For Each of the Following Transactions,state Which Special Journal Should

question 151

Essay

For each of the following transactions,state which special journal should be used to record the transaction.In addition,state which columns will be used.
Transaction 1: Freeworld Co.paid $1,500 for monthly utilities,on the date the bill was received.
Which special journal?
Which columns are used to record the transaction?
Transaction 2: Wideworld Co.purchased office supplies on account.
Which special journal?
Which columns are used to record the transaction?
Transaction 3: Wonderworld Co.sold $5,000 of merchandise inventory to A.Allen,on account.The cost of the merchandise inventory was $3,200.The company uses a perpetual inventory system.
Which special journal?
Which columns are used to record the transaction?
Transaction 4: Oneworld Co.borrowed $10,000 from World National Bank.
Which special journal?
Which columns are used to record the transaction?

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Definitions:

DC

DC stands for direct current, which is an electrical current that flows in one direction only, used in batteries, electronics, and some power supplies.

Capacitance Unit

The unit of measurement for capacitance, the farad (F), indicating the ability of a system to store an electric charge.

Farad

The unit of capacitance in the International System of Units (SI), symbolized as F, indicating the capacity of a capacitor to store charge per unit voltage.

Leakage Current

The amount of current that flows through the dielectric separating the plates of a capacitor.