Answer:
a. (E) Common stock US$ 26 (credit) and (A) cash US$ 26 (debit)
b. (L) Loans payable US$ 64,000 (credit) and (A) cash US$ 64,000 (debit)
c. (E) Rental expenses US$ 1,100 (debit), (A)Rental paid in advance US$ 1,100 (debit) and (A)cash US$ 2,200
d. (A) Prepaid insurance US$ 1,800 (debit) and (A) cash US$ 1,800 (credit)
e. (A) Fixed Assets US $ 11,000 (debit), (A) cash US$ 2,600 (credit) and (L) accounts payable US$ 8,400 (credit)
f. (A) Inventory US$ 3,200 (debit) and (A) cash US$ 3,200 (credit).
g. (E) Advertisement expenses US$ 270 (debit) and (A) cash US$ 270 (credit)
h. (R) Sells US$ 1,700 (credit), (A)cash US$ 850 (debit) and (A) accounts receveible US$ 850 (debit). (E) Cost of sales US$ 900 (debit) and (A) Inventory US$ 900 (credit).
i. (L) Accounts payable US$ 8,400 (debit) and (A) cash US$ 8,400 (credit).
j. (L) Income in advance US$ 230 (credit) and (A)cash US$230 (debit)
