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Describe the general journal and the general ledger. During 2014, the company completed the transactions given below. You are to indicate the appropriate journal entry for each transaction by giving the account letter and amount. Some entries may need three letters. The first transaction is given as an example.
Letter
Account Title
A
Cash
B
Accounts receivable
C
Office supplies inventory
D
Equipment
E
Land
F
Accounts payable
G
Notes payable
H
Conunon stock
I
Additional paid-in capital
J
Retained earnings
Transaction
Debit
Credit
Amount
1.
Borrowed $50,000 and signed a note.
$50,000
2.
Purchased equipment for $50,000. Paid $10,000 cash, signed $40,000 note payable.
3.
Collected $15,000 of accounts receivable.
4.
Paid $12,000 of accounts payable.
5.
Issued 10,000 shares of $10 par value common stock in exchange for $160,000 cash.
6.
Purchased $5,000 office supplies on credit.
7.
Paid for the office supplies in (6).
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