heck Your WorkGoogle Chrome eztomheducationcomhmtpx 1 For ea

heck Your Work-Google Chrome ezto.mheducation.com/hm.tpx 1. For each of the above transactions, prepare accrual basis journal entries. (If no entry is required for a transactionlevent, select \"No Journal Entry Required\" in the first account field.) Answer is complete but not entirely correct. No Transaction General Journal Debit Credit Cash 107,000 Notes Payable (short-term) 107,000 5,000 104.600 Cash Accounts Receivable Service Revenue 09,600 Equipment Cash 159,000 C. 59,000 Salaries and Wages Expens 2,000 Cash 2,000 Cash 905 Accounts Receivable 05 Travel Expense 5,600 5600 Cash Cash 3 7.600 Accounts Payable 600 h. Utlities Expense 31.200 24,800 6,400 Cash Accounts Payable 2. Calculate the company\'s preliminary net income Answer is complete but not entirely correct. S 68.200

Solution

the following will be the journal entry for transaction g:

now,

the following table shows the company\'s net income.

note: only transaction affecting net income i.e., revenues and expenses will be taken into consideration.

note:

purchase of equipment (transaction c) is a capital expenditure and does not enter into determination of preliminary net income.

Paying off notes payable or accounts payable are not expenses.

Receivng cash against accounts receivable does not generate new income. It is receiving in cash the income already entered in books as accounts receivable.

g	Accounts payable a/c	$7,600
	.............To Cash a/c		$7,600
	(cash is to be credited when paying off accounts payable, with corressponding debit given to accounts payable)