Listed Below Are the Transactions for Kaiman Company

question 88

Essay

Listed below are the transactions for Kaiman Company:
1.The owners invest $100,000 in the company in exchange for common stock.
2.The company purchases equipment costing $30,000 with a note payable.The equipment has a ten year life and no salvage value.The company uses the straight-line method of depreciation.
3.The company purchases inventory costing $10,000 by paying cash.
4.The company paid $8,000 for four months' rent in advance.
5.The company sold inventory for $9,000 cash.The cost of the inventory was $5,000.
6.The company used one month of rent.
7.The company declared a cash dividend of $500.
8.Depreciation expense on the equipment was recorded for the month.
Required:
Prepare journal entries for the above transactions.

---

Definitions:

Rated Voltage

The maximum safe voltage at which an electrical component can operate without sustaining damage.

Resistive Loads

Electrical components or devices within a circuit that primarily consume energy through resistance.

Wave Forms

Graphical representations of electrical signals, showing the variation of voltage or current over time.

Polarity

Refers to the orientation of magnetic or electrical poles, indicating the direction of magnetic or electrical fields.