Answer:
General Ledger
1.
Cash $40,000 (debit)
Capital $40,000 (credit)
<em>Owners Invest In the business</em>
2.
Supplies $500 (debit)
Accounts Payable $500 (credit)
<em>Supplies purchased on credit</em>
3
Equipment $25,000 (debit)
Cash $3,500 (credit)
Note Payable $21,500 (credit)
<em>Equipment purchased partly in cash and in credit</em>
4.
Accounts Receivable $4,000 (debit)
Commission Earned $4,000 (credit)
<em>Commission earned not yet received</em>
5.
Rent Expense $700 (debit)
Cash $700 (credit)
<em>Rent paid in cash</em>
6.
Accounts Payable $250 (debit)
Cash $250 (credit)
<em>Settlement of Accounts Payable</em>
7.
Advertising Expense $800 (debit)
Accounts payable $800 (credit)
<em>Advertising Bill due</em>
8.
Salaries Expenses $2,500 (debit)
Cash $2,500 (credit)
<em>Salaries paid</em>
9.
Dividends $1,200 (debit)
Cash $1,200 (credit)
<em>Dividends paid to owners of the company</em>
10.
Cash $2,000 (debit)
Accounts Receivable $2,000 (credit)
<em>Accounts Receivables settle their debts</em>
Explanation:
See the journal entries prepared including narrations (for your learning and understanding)
