Prepare the Journal Entry to Record Each of the Following

question 137

Essay

Prepare the journal entry to record each of the following independent transactions. (Use the number of the transaction in place of a date for identification purposes.)
1. Services provided for cash of $7,050.
2. Purchase of equipment for cash of $2,240.
3. Services provided on account of $530.
4. Purchases of supplies on account for $365.
Purchases of supplies on account for $365.

---

Definitions:

Authority

The right or power assigned to an individual or organization to make decisions, give orders, and enforce rules.

Disclose Identity

The act of revealing or making known the identity of a person or entity, often in legal contexts where anonymity is protected until disclosure is required.

Contract

A legally binding agreement between two or more parties that defines and governs the rights and duties of those parties.

Principal

The original amount of money invested or loaned, not including profits or interest.