Question

Write the journal entries in the given table for below transactions of Clean Corporation during June 2020.

1

Purchased inventory from suppliers on account for $500.

2

Purchased new office car using 2 year Note Payable for $50,000.

3

Paid rent for the company office for $12,000.

4

Paid for inventory purchased in transaction 1.

5

Sold on account to customers for $600.

Answer 1

Answer -

1)

Purchased inventory from suppliers on account for $500.

Title	Debit(in $)		Credit(in $)
Inventory Account	$500
To Accounts Payable Account			$500

2)

Purchased new office car using 2 year Note Payable for $50,000.

Title	Debit(in $)		Credit(in $)
Car Account	$50,000
To Note Payable Account			$50,000

3)

Paid rent for the company office for $12,000

Title	Debit(in $)		Credit(in $)
Office Rent Account	$12,000
To Cash Account			$12,000

4)

Paid for inventory purchased in transaction 1.

Title	Debit(in $)		Credit(in $)
Accounts Payable Account	$500
To Cash Account			$500

5)

Sold on account to customers for $600.

Title	Debit(in $)		Credit(in $)
Accounts Receivable Account	$600
To Sales Account			$600

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