# Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at \$500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16. B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of \$9,000. Hondo had yet to provide legal services as of August 10. C. On September 22, Jack Pies sells thirty pies for \$25 cash per pie. The sales tax rate is 8%. D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of \$3,250 cash.

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 12, Problem 5PA
Textbook Problem
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## Review the following transactions, and prepare any necessary journal entries.A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at \$500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16.B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of \$9,000. Hondo had yet to provide legal services as of August 10.C. On September 22, Jack Pies sells thirty pies for \$25 cash per pie. The sales tax rate is 8%.D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of \$3,250 cash.

To determine

Concept introduction:

Journal Entry: In journal entry company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal.

To prepare:

Journal Entry In the books of company.

### Explanation of Solution

A. Purchase goods of 100000 (200x500) on credit so in this company debited the purchases account and credited the accounts payable account.

B. Amount received by the customer of 9000 which is debited in the cash account and it is credited in the income received in advance account.

C...

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