Analysis of Journal Entries For each of the following journal entries, write a description of the…

Analysis of Journal Entries

For each of the following journal entries, write a description of the underlying event.

1.

Cash              

 300

 

 

Accounts Receivable 

 

 300

2.

Accounts Payable     

 400

 

 

Inventory         

 

 400

3.

Cash              

 5,000

 

 

Loan Payable       

 

 5,000

4.

Cash              

 200

 

 

Accounts Receivable   

 700

 

 

Sales             

 

 900

 

Cost of Goods Sold   

 550

 

 

Inventory         

 

550 

5.

Prepaid Insurance     

 200

 

 

Cash             

 

 200

6.

Dividends           

 250

 

 

Dividends Payable   

 

 250

7.

Retained Earnings     

 1,000

 

 

Dividends         

 

 1,000

8.

Insurance Expense     

 50

 

 

Prepaid Insurance   

 

 50

9.

Inventory           

 600

 

 

Cash             

 

 150

 

Accounts Payable    

 

 450

10.

Allowance for Bad Debts

 46

 

 

Accounts Receivable 

 

 46

11.

Interest Expense   

 125

 

 

Interest Payable  

 

 125

12.

Wages Payable    

 130 

 

Wages Expense    

 75

 

 

Cash          

 

 205

13.

Accounts Payable  

 500

 

 

Cash          

 

 490

 

Purchase Discounts

 

 10