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    Kara Elizabeth Company

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    The following journal entries are from the books of Kara Elizabeth Company:

    a. Buildings 90,000
    cash 35,000
    Mortgage Payable 55,000
    b. Cash 25,000
    Capital Stock 25,000
    c. Cash 40,000
    Loan Payable 40,000
    D. Salary Expense 12,000
    Cash 12,000
    e.Inventory 12,500
    Acct Payable 12,500
    f. Accts Receivable 84,000
    Sales 84,000
    Cost of Goods 51,000
    Inventory 51,000
    G. Cash 62,000
    Acct Receivable 62,000
    h. Acct Payable 38,000
    Cash 38,000

    For each of the journal entries, prepare an explanation of the business event that is being represented.

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    https://brainmass.com/business/finance/kara-elizabeth-company-120667

    Solution Preview

    For each of the journal entries, prepare an explanation of the business event that is being represented.

    a. Buildings 90,000
    cash 35,000
    Mortgage Payable 55,000

    The company purchases buildings with the value of $90,000 by using cash of $35,000 and on mortgage for the remaining amount.

    b. Cash 25,000
    Capital ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare an explanation of the business event that is being represented for each journal entries.

    $2.19

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