The following are the transactions of Dennen Inc. for the month of January 2015. a. (Sample)...


The following are the transactions of Dennen Inc. for the month of January 2015.

a. (Sample) Borrowed $30,000 from a local bank.
b. Lent $10,000 to an affiliate; accepted a note due in one year.
c. Sold 100 additional shares of stock with a par value of $0.10 per share to investors for $500 cash.
d. Purchased $15,000 of equipment, paying $5,000 cash and signing a note for the rest due in one year.
e. Declared and paid $2,000 in dividends to stockholders.

For each of the above transactions of Dennen Inc. for the month of January 2015, indicate the accounts, amounts, and direction of the effects (+ for increase and ? for decrease) on the accounting equation. A sample is provided. ( Accounts payable, accounts receivable, Accrued liabilities payable, additional paid-in capital, buildings, cash, common stock, dividends payable, equipment, intangibles, inventories, land, long-term debt, long term investments, notes payable, notes receivable, retained earnings, short-term investments, shore fixtures, supplies)

Assets                                                       = Liabilities + Stockholders' Equity                           
a. Cash                                       30,000 Notes payable                                30,000                                        

Journal Entry:

Journal entry is an entry to the Company's journal that keeps accounting transactions in chronological order. This consists of a debit and credit which should always be equal, any discrepancies should be checked and accounted accordingly.

Answer and Explanation: 1

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Transaction Assets = Liabilities + Stockholder's Equity
a. Cash 30,000 Notes Payable 30,000.00
b. Notes...

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Journal Entries and Trial Balance in Accounting


Chapter 3 / Lesson 10

Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.

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