Question

Financial Accounting Journal entries

Prepare the proper journal entry for each:

1) On January 1,2012, MC Hammer contributed $2,000 in cash toestablish Can't Touch This, inc. (CTTI). He is the sole owner ofthe firm.

2) on January 15,2012, CTTI acquired acoustin equipment costing$15,000 from Run DMC. CTTI paid $3,000 cash and signed a notepayable for the rest.

3) On march 1, 2012, CTTI held a concert. Ticket sales to bored,suburban children totaled $20,000 in cash.

4) On march 15, 2012, CTTI paid MC Hammer wages of 6,000 incash.

5) On march 20th, the company purchased $10,000 of inventory onaccount.



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