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24 February, 23:03

The Mello Company was recently started and had the following transactions: A. Owner's invest $8,000 in the company B. Purchased $1,625 of equipment C. Purchased $4,000 of inventory D. Borrowed $1,200 from a bank E. Paid $750 rent on office space F. Paid $800 in dividends G. Paid $1,860 in employee payroll H. Sold 1/4 of inventory for a total of $3,120 I. Made $150 payment on bank loan

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  1. 25 February, 01:19
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    The transactions in the question seems requiring for the journal entries. You can find them below.

    Explanation:

    Transaction A:

    Debit: Cash $8,000

    Credit: Capital $8,000

    Transaction B:

    Debit: Equipment $1,625

    Credit: Cash/Bank $1,625

    Transaction C:

    Debit Purchases - Inventory: $4,000

    Credit Cash/Bank: $4,000

    Transaction D:

    Debit: Bank $1,200

    Credit: Bank loan $1,200

    Transaction E:

    Debit: Rent expense $750

    Credit: Cash/Bank $750

    Transaction F:

    Debit: Dividend expense $800

    Credit: Cash/Bank $800

    Transaction G:

    Debit: Employee payroll - wages expense $1,860

    Credit: Cash/Bank $1,860

    Transaction H:

    Debit: Cash/Bank $3,120

    Credit: Sales $3,120

    Transaction I:

    Debit: Bank loan $150

    Credit: Cash/Bank $150
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