Concept explainers
Assume the following T−accounts reflect Belle Co.’s general ledger and its first seven transactions a through g, which are posted to them. Identify the explanation from 1 through 7 below that best describes each transaction a through g reflected in the T−accounts, and enter that letter in the blank space in front of each numbered explanation.
____1. The company paid $4,800 cash in advance for prepaid insurance coverage.
____2. D. Belle created a new business and invested $6,000 cash, $7,600 of equipment, and $12,000 in web servers in exchange for common stock.
____3. The company purchased $900 of supplies on account.
____4. The company received $4,500 cash for services provided.
____5. The company paid $900 cash toward accounts payable.
____6. The company paid $3,400 cash for equipment.
____7. The company paid $800 cash for selling expenses.
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Loose Leaf for Financial Accounting: Information for Decisions
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