90.2K

Verified Solution

Link Copied!

HANSACTION ANALYSIS Amigo Plastics has been in operation for three years. Below find description of activities that occurred during Year 4. You might find it helpful to prepare journal entries for each transaction before you answer questions asked. Transaction I: Buy an equipment for $100,000, paying $30,000 in cash and signing a note due in nine months for the remaining balance. 021. Indicate the account title to be debited by $100,000. A. Accrued Expense B. Cash C. Depreciation Exp. D. Note Payable E. Property and Equipment 022. Indicate the account title to be credited by $30,000. A. Accrued Expense B. Cash C. Depreciation Exp. D. Note Payable E. Property and Equipment Q23. Indicate the account title to be credited by $70,000. A. Acct Receivable B. Cash C. Contributed Capital D. Note Payable E. None Transaction 2: Sold equipment at its cost of $5,000 on account. 024. Indicate the account title to be debited by $5,000. A. Acct Receivable B. Cash C. Gain on Sale of Equipment Q25. Indicate the account title to be gredited by $5,000. D. Equipment E. Building A. Acct Payable B. Cash C. Gain on Sale of Equipment D. Equipment E. None Transaction 3: Declared that the company would pay $30,000 in cash dividends to investors next month. 026. Indicate the account title to be debited by $30,000. A. Acct Receivable B. Acct Payable C. Cash D. Retained Earnings E. None Q27. Indicate the account title to be credited by $30,000. A. Acct Receivable B. Dividend Payable C. Cash D. Note Payable E. None

Answer & Explanation Solved by verified expert

See Answer