Issued common stock to investors for $14,083 cash (example). b. purchased $878,418 of additional inventory on account. c. borrowed $11,000. d. sold $1,409,068 of products to customers on account; cost of the products sold was $852,316. e. paid cash dividends of $22,737. f. purchased for cash $19,397 in additional property, plant, and equipment. g. incurred $386,540 in selling expenses, paying three-fourths in cash and owing the rest on account. h. earned $370 interest on investments, receiving 90 percent in cash. i. incurred $1,395 in interest expense to be paid at the beginning of next year.

1.                               Cash DR   $14083

                                    To Common Stock $14083

(Being Cash received from sale of common stock to shareholders)

2.                           Merchandise InventoryDR $878418

                                    To Accounts Payable $878418

(Being Inventory purchased on account)

3.                                      Cash DR  $11000

                                        To Long Term Debt $11000

(Being Cash Borrowed)

4.                     Accounts Receivable DR   $1409068

                              To Sales $1409068

(Being Sales made on Account)

                    Cost of Goods Sold DR  $852316

                            To Merchandise Inventory $852316

(Being Cost of goods sold recognised against sales made)

                           Dividends Payable DR $ 22737

                                  To Cash $22737

(Being Dividends Paid)

                             Property, Plant and EquipmentDR $19397

                                      To Cash$19397

(Being additional Property, Plant and Equipment purchased in cash)

                           Selling ExpenseDR $386540

                                   To Cash $ 289905

                                   To Accounts Payable$96635

(Being Selling Expenses incurred in cash and on account)

                               CashDR $333

                               Interest RecievableDR $37

                                      To Interest Income$ 370

(Being Interest Received in Cash and partly receivable later)

                           Interest Expense DR $1395

                             To Interest Payable $1395

(Being Interest Expense Accrued).

answer; conceptual skills;