Answer and Explanation:
The transactions 3 6 and 8 represents that the expenses are incurred which results in increased and expenses and the transaction 4 and 5 shows that there is an increased in revenue
The journal entry is shown below:
For transaction 3
Rent expense
To Cash
(Being the rent expense is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 6
Electricity expenses Dr
To Cash
(Being the energy usage is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 8
Advertising expense Dr
To Account payable
(Being the advertising expense is recorded)
As the expense has debit balance so it would be increased
For transaction 4
Account receivable Dr
To Service revenue
(Being the service is provided)
As the revenue has credit balance so it would be increased
For transaction 5
Cash Dr
To Service revenue
(Being the service provided is recorded)
As the revenue has credit balance so it would be increased
The attachment is provided for better understanding
The other transactions represent the assets, liabilities and stockholder equity
The correct definition for free cash flows to the firm is <u>D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure</u>.
<h3>What is free cash flow?</h3>
Free cash flow (FCF) is the cash a company has after all the cash outflows for its operations and capital assets maintenance.
This implies that free cash flow is the available cash that a company has after making payments for its operating expenses and capital expenditures (Capital Expenditure).
A. EBITDAX (1-Tax) + Depreciation - Changes in working capital + Capital Expenditure
B. EBITDAX (1-Tax) - Depreciation - Changes in working capital - Capital Expenditure
C. EBITX (1-Tax) - Depreciation - Changes in working capital + Capital Expenditure
D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure
Thus, the correct definition for free cash flows to the firm is <u>Option D</u>.
Learn more about free cash flows at brainly.com/question/15848997
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