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    Stringer Company

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    Journal Entries
    Prepare the necessary general journal entries for the month of October for Stringer Company for each situation given below.

    Oct 1 Started computer business by selling $50,000 of common stock.

    Oct. 5 Paid operating expenses as follows: $4,000 Salaries Expense, $2,000 Rent Expense, $500 Utilities Expense.

    Oct. 8 Purchased inventory supplies for $25,000 on account.

    Oct. 12 Borrowed $25,000 from Sun Bank signing an 8%, 6-month note.

    Oct. 15 Received $3,500 cash for computer services to be completed on October 30th.

    Oct. 20 Sold merchandise for $20,000 to Adder Company on account.

    Oct. 22 Purchased a 2-year insurance policy for $4,400 cash.

    Oct. 29 Purchased office equipment for $15,000 paying $4,000 in cash and the remainder on account.

    Oct 30 Paid salaries expense of $4,800 for the October payroll.

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    Solution Preview

    Journal Entries
    Prepare the necessary general journal entries for the month of October for Stringer Company for each situation given below.

    Oct. 1 Started computer business by selling $50,000 of common stock.

    Oct. 1 Cash 50,000
    Common Stock 50,000

    Oct. 5 Paid operating expenses as follows: $4,000 Salaries Expense, $2,000 Rent Expense, ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare the necessary general journal entries for the month of October for Stringer Company for each situation given.

    $2.19

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