In a compound entry, the standard format requires that all debits be listed beforethe credits.before you go on...As president and sole shareholder, Kate Browne engaged in the followingactivities in establishing her beauty salon, Hair It Is Company.1. Opened a bank account in the name of Hair It Is Company and deposited €20,000 of her ownmoney in this accounting exchange for ordinary shares.2. Purchased equipment on account (to be paid in 30 days) for a total cost of €4,800.3. Interviewed three applicants for the position of beauticianIn what form (type of record) should Hair It Is Company record these three activities? Preparethe entries to record the transactions.SolutionEach transaction that is recorded is entered in the general journal. The three activities would berecorded as follows.1. CashShare Capital-Ordinary(Issued shares for cash)20,0002. Equipment4,800

Journal Entry:- Way of recording any transaction of a company with debit and credit side. It works…

Answered: Browne engaged in the following y and…

Browne engaged in the following y and deposited €20,000 of her own or a total cost of €4,800. n. on cord these three activities? Prepare purnal. The three activities would be

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 16EA: Discuss how each of the following transactions for Watson, International, will affect assets,...

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