Share
Explore BrainMass

Kara Elizabeth Company

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.

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