Answer:
1. Cash (Dr.) $145,850
Sales (Cr.) $145,850
2. Purchases (Dr.) $76,200
Accounts Payable (Cr.) $76,200
3. Accounts Payable (Dr.) $4,100
Cash (Cr.) $4,100
4. Prepaid Rent (Dr.) $24,000
Cash (Cr.) $24,000
5. Wages Expense (Dr.) $12,500
Cash (Cr.) $12,500
Wages Expense (Dr.) $350
Wages Payable (Cr.) $350
6. Depreciation Expense (Dr.) $1,700
Accumulated Depreciation (Cr.) $1,700
Explanation:
Journal entries are recorded for the business transactions. These transaction incurred in the business are recorded in the books of accounts. These journal entries then create Ledger and Trial balance.
