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    Silva Company

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    Silva Company had the following transactions:
    1. Purchased a new building, paying $20,000 cash and issuing a note for $50,000.
    2. Purchased $15,000 of inventory on account.
    3. Sold inventory costing $5,000 for $6,000 on account.
    4. Paid for inventory purchased on account (item 2).
    5. Issued capital stock for $25,000.
    6. Collected $4,500 of accounts receivable.
    7. Paid utility bills totaling $360.
    8. Sold old building for $27,000, receiving $10,000 cash and a $17,000 note (no gain or loss
    on the sale).
    9. Paid $2,000 cash dividends to stockholders.
    Record the above transactions in general journal format. (Omit explanations.)

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    https://brainmass.com/business/finance/silva-company-journalizing-transactions-166151

    Solution Preview

    Silva Company had the following transactions:
    1. Purchased a new building, paying $20,000 cash and issuing a note for $50,000.
    2. Purchased $15,000 of inventory on account.
    3. Sold inventory costing $5,000 for $6,000 on account.
    4. Paid for inventory purchased on account (item 2).
    5. ...

    Solution Summary

    This solution is comprised of a detailed explanation to journalize the transactions for Silva Company.

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