Category: Journal Entry Examples

Q38. Prepaid expenses On December 1, 20×1, Entity A purchased a new insurance plan that covers one year period from December 1, 20×1 to November

Q36. Merchandise transactions Entity A had the following transactions: (1) May 1, 20×1: Purchased 260 units of merchandise at $10 per unit and paid $2,600

Section 7. Summary Q35. Debits and credits On which side of a journal entry are the following transactions recorded? (1) Increases in asset accounts (2)

Q34. Treasury stock On December 1, 20×1, Entity A purchased 6,000 shares of its own common stock at $25 per share. Par value of common

Q33. Stock dividend (1) On January 25, 20×2, Entity A declared a 5% stock dividend on 800,000 shares of common stock. Par value of common

Q32. Cash dividend (1) On February 20, 20×1, Entity A declared a $2 per share cash dividend on 270,000 shares of common stock. (2) The