Question

Question:Assume the following T-accounts reflect Belle Co.’s general ledger and its first seven transactions athrough g, which are posted to them. Identify the explanation from 1 through 7 below that best describeseach transaction athrough greflected in the T-accounts, and enter that letter in the blank space in front ofeach numbered explanation.

Cash Web Servers

(a) 6,000 (b) 4,800 (a) 12,000

(e) 4,500 (d) 800

(f) 900 Accounts Payable

(g) 3,400 (f) 900 (c) 900

Common Stock

(a) 25,600

Services Revenue

Supplies (e) 4,500

(c) 900

Selling Expenses

(d) 800

Prepaid Insurance

(b) 4,800

Equipment

(a) 7,600

(g) 3,400

______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.

Short answer

Answer

The matched transactions for the given statements in order are as follows—

(b), (a), (c), (e), (f), (g), and (d).

Step-by-step solution

Transaction 1 to 4

Statement	Transaction
1	b
2	a
3	c
4	e

Explanation: The given transaction no. matches with the affected accounts.

Transaction 5 to 7

Statement	Transaction
5	f
6	g
7	d

Explanation: The given transaction no. matches with the affected accounts.