80.2K

Verified Solution

Link Copied!

Question # 3. Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.

TERM	PHRASE	Number for term that matches the phrase.
1. General ledger	Refers to the right side of an account.	____
2. Credit	Asset and expense accounts normally have this type of balance.	____
3. General journal	Used to record any type of transaction in chronological order.	____
4. Debit	Contains all the accounts of an entity.	____
5. Closing entries	Used to reset temporary accounts to a zero balance.	____

Question # 4. Prepare journal entries to record the following transactions of Daisy King Ice Cream Company. If an entry is not required, state "No Entry." 1. Started business by issuing 10,000 shares of capital stock for $20,000. 2. Signed a franchise agreement to pay royalties of 5% of sales. 3. Leased a building for three years at $500 per month and paid six months' rent in advance. 4. Purchased equipment for $5,400, paying $1,000 down and signing a two-year, 10% note for the balance. 5. Purchased $1,800 of supplies on account. 6. Recorded cash sales of $800 for the first week. 7. Paid weekly salaries and wages, $320. 8. Paid for supplies purchased in item (5). 9. Paid royalties due on first week's sales. 10. Recorded depreciation on equipment, $50.

Answer & Explanation Solved by verified expert

See Answer