Terapin company engages in the following external transactions for november. 1. purchase equipment in exchange for cash of $22,400. 2. provide services to customers and receive cash of $4,600. 3. pay the current month's rent of $1,600. 4. purchase office supplies on account for $800. 5. pay employees' salaries of $1,100 for the current month. required: record the transactions.

Explanation:

The journal entries are shown below:

1. Equipment A/c Dr $22,400

          To Cash A/c $22,400

(Being equipment is purchased for cash)

2. Cash A/c Dr $4,600

       To Service revenue A/c $4,600

(Being cash is received for service provided)

3. Rent expense A/c Dr $1,600

        To Cash A/c $1,600

(Being rent is paid for cash)

4. Office supplies A/c Dr $800

        To Accounts payable A/c $800

(Being office supplies is purchased on credit)

5. Salaries expense A/c Dr $1,100

        To Cash A/c $1,100

(Being salary is paid for cash)

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