Prepare a Journal Entry for Each of the Following Transactions

question 9

Essay

Prepare a journal entry for each of the following transactions.
a_KBM Consulting Inc.sells 2,000 shares of $4,cumulative preferred shares for $70 per share.
b_KBM Consulting Inc.sells 80,000 common shares for $4.50 per share.
c_Received equipment with a market value of $90,000,and issued 12,400 common shares in exchange.
d_KBM Consulting Inc.reports a net income for the current year of $425,000.Prepare the entry to close the income summary account.
$$\begin{array} { | c | c | c | c | } \hline \text { Date } & \text { Accounts } & \text { Debit } & \text { Credit } \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}$$

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Definitions:

Journalizing

The process of recording business transactions in the accounting journals as part of the bookkeeping process.

Transaction

An agreement or exchange between two parties that is recorded and has an economic impact on the finances of a business.

Journal

A detailed record where all financial transactions of a business are initially recorded, before being transferred to the general ledger.

Posting Reference

A notation or code that links journal entries to the corresponding ledger accounts, facilitating tracking and reviewing of financial transactions.