I need help with understanding this problem. As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions:TransactionExplanationa. Debit Equipment and credit Cash.b. Debit Dividends and credit Cash.c. Debit Wages Payable and credit Cash.d. Debit Equipment and credit Common Stock.e. Debit Cash and credit Unearned Revenue.f. Debit Advertising Expense and credit Cash.g. Debit Cash and credit Service Revenue.Paid cash dividends to stockholders.Paid for advertising with cash.Paid wages owed to employees, previously recorded.Performed services and were paid by the customer.Purchased equipment with cash.Received cash from customer for work to be completed in the future.Received equipment for the business in exchange for common stock.ose from any drop-down list and then click Check Answer

Answered: As the manager of Margarita Mexican…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I need help with understanding this problem.

As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions:
Transaction
Explanation
a. Debit Equipment and credit Cash.
b. Debit Dividends and credit Cash.
c. Debit Wages Payable and credit Cash.
d. Debit Equipment and credit Common Stock.
e. Debit Cash and credit Unearned Revenue.
f. Debit Advertising Expense and credit Cash.
g. Debit Cash and credit Service Revenue.
Paid cash dividends to stockholders.
Paid for advertising with cash.
Paid wages owed to employees, previously recorded.
Performed services and were paid by the customer.
Purchased equipment with cash.
Received cash from customer for work to be completed in the future.
Received equipment for the business in exchange for common stock.
ose from any drop-down list and then click Check Answer

Expert Solution

Step 1

Transaction: It is an event between a buyer and seller which involves money. It is an exchange of goods or services between a buyer and seller for a consideration.

Journal entry: It is also called as book of original entry. All financial transactions occurred in a business are recorded using the journal entry. The journal entry is recorded in the order in which a financial transaction happens and for every entry a debit and a credit for an equal amount is recorded.

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