53 prepare the necessary journal entries for each of the following transactions for 4307257

53 prepare the necessary journal entries for each of the following transactions for 4307257

53) Prepare the necessary journal entries for each of the following transactions for Klokel, Inc.

a. Klokel, Inc. sold 1,200 shares of common stock at $30 per share in cash.

b. The company purchased equipment for $14,000, paying $4,000 in cash and the remainder in a note.

c. The company paid the current month's rent, which amounted to $900, and the current month's utilities, which amounted to $400.

d. Merchandise inventory costing $1,900 was sold on account for $4,100.

e. Depreciation on the equipment amounted to $600.

54) Following are accounts in alphabetical order, which are numbered for identification, followed by a series of transactions. For each transaction, determine what account(s) should be debited and credited, and place the number associated with that account in the appropriate debit or credit column.

1. Accounts Receivable9. Notes Payable

2. Accounts Payable10. Paid-in Capital

3. Accumulated Depreciation-equipment11. Prepaid Rent

4. Cash12. Rent Expense

5. Cost of Goods Sold13. Sales

6. Depreciation Expense14. Wage Expense

7. Equipment15. Utility Expense

8. Merchandise Inventory

DebitCredit

a. Purchased equipment by offering a six month note.________ ________

b. Received and paid the current utility bill.________ ________

c. Purchased merchandise inventory on account.________ ________

d. Recorded depreciation on the equipment.________ ________

e. Recognized expense of 1 month's rent

(prepaid rent recorded on the books)  ________________

f. Sold merchandise inventory on account,

sale price above cost.________ ________

g. Collected cash from customers on account.________ ________

h. Sold merchandise inventory for cash,

sale price above cost.________ ________

i. Sold shares of common stock for cash.________ ________

j. Paid 6 months rent in advance.________ ________

k. Wages were earned and paid to employees.________ ________

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