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Journalize Fred Buchanan's July Transactions Using the Combination Journal Provided

question 33

Essay

Journalize Fred Buchanan's July transactions using the combination journal provided.Prove the journal.Fred uses the modified cash basis for his accounting records.

$\begin{aligned} \text { July } 1 & \text { Fred Buchanan invested } \$ 100,000 \text { in his business. } \\ 2 & \text { Borrowed } \$ 50,000 \text { from the bank. } \\ 3 & \text { Received } \$ 1,100 \text { cash from customers. } \\ 7 & \text { Bought supplies on account, } \$ 750 \\ 10 & \text { Paid part-time receptionist } \$ 1,300 . \\ 15 & \text { Paid advertising bill } \$ 1,500 \text {. } \\ 17 & \text { Purchased } \$ 14,000 \text { of office furniture paying } \$ 4,000 \text {; the balance on account. } \\ 22 & \text { Billed credit customers, } \$ 4,500 \text {. } \\ 27 & \text { Received } \$ 1,000 \text { from credit customers. } \\ 29 & \text { Received } \$ 5,500 \text { from cash customers. }\end{aligned}$ $Journalize Fred Buchanan's July transactions using the combination journal provided.Prove the journal.Fred uses the modified cash basis for his accounting records. \begin{aligned} \text { July } 1 & \text { Fred Buchanan invested } \$ 100,000 \text { in his business. } \\ 2 & \text { Borrowed } \$ 50,000 \text { from the bank. } \\ 3 & \text { Received } \$ 1,100 \text { cash from customers. } \\ 7 & \text { Bought supplies on account, } \$ 750 \\ 10 & \text { Paid part-time receptionist } \$ 1,300 . \\ 15 & \text { Paid advertising bill } \$ 1,500 \text {. } \\ 17 & \text { Purchased } \$ 14,000 \text { of office furniture paying } \$ 4,000 \text {; the balance on account. } \\ 22 & \text { Billed credit customers, } \$ 4,500 \text {. } \\ 27 & \text { Received } \$ 1,000 \text { from credit customers. } \\ 29 & \text { Received } \$ 5,500 \text { from cash customers. }\end{aligned}$

Definitions:

Present Value Methods

Techniques used to determine the current worth of a future cash flow, stream of cash flows, or an investment, by discounting them at a specific rate.

Net Present Value

A financial metric that calculates the value of a project or investment in terms of its present value of net cash inflows minus the present value of its costs.

Cash Payback Period

The length of time it takes for an investment or project to generate enough cash flows to recover its initial cost.

Present Value Factor

The present value factor is a factor used to calculate the present value of a future amount, considering a specific interest rate over a set period.