The following journal entries are from the books of Kara Rachel Company:
|
a. Cash |
10,000 |
|
|
Capital Stock |
10,000 |
|
|
b. Cash |
25,000 |
|
|
Loan Payable |
25,000 |
|
|
c. Buildings |
50,000 |
|
|
Cash |
5,000 |
|
|
Mortgage Payable |
45,000 |
|
|
d. Inventory |
25,000 |
|
|
Accounts Payable |
25,000 |
|
|
e. Accounts Receivable |
42,000 |
|
|
Sales |
42,000 |
|
|
Cost of Goods Sold |
21,000 |
|
|
Inventory |
21,000 |
|
|
f. Salary Expense |
6,000 |
|
|
Cash |
6,000 |
|
|
g. Cash |
37,000 |
|
|
Accounts Receivable |
37,000 |
|
|
h. Accounts Payable |
20,000 |
|
|
Cash |
20,000 |
For each of the journal entries, prepare an explanation of the business event that is being represented.