Provide Explanations for the Following Related Journal Entries:
A \begin{array}{|l|r|r|}
\hline

question 109

Essay

Provide explanations for the following related journal entries:
a.
$\begin{array}{|l|r|r|}\hline \text { Cash } & 6,000 & \\\quad \text { Common Stock } & & 6,000 \\\hline\end{array}$

b.
$\begin{array}{|c|r|r|}\hline \text { Law Library } & 3,400 & \\\text { Accounts Payable } & & 3,400 \\\hline\end{array}$

c.
$\begin{array}{|l|r|r|}\hline \text { Cash } & 600 & \\\text { Accounts Receivable } & 1,000 & \\\quad \text { Legal Fees Earned } & & 1,600 \\\hline\end{array}$

d.
$\begin{array}{|l|l|l|}\hline \text { Cash } & 500 & \\\text { Accounts Receivable }& & 500\\\hline \end{array}$

e.
$\begin{array}{|l|r|r|}\hline\text { Accounts Payable } & 3,400 \\\text { Cash }& & 3,400 \\\hline\end{array}$

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Definitions:

Nominal Exchange Rate

The exchange rate at which the currency of one nation can be exchanged for the currency of another nation, without considering inflation adjustments.

Purchasing-Power Parity

An economic theory that compares different countries' currencies through a basket of goods approach, to evaluate the relative purchasing power.

Aruban Florin

The currency of Aruba, symbolized as Afl., used within its economic transactions.

Thai Bhat

The currency of Thailand.