1. Please write a 4-6 sentence paragraph on the following question. Describe each of the 4 basic financial statements. What is the relationship between them?
2. During the first month of operations (March 2011) Jerry Enterprises completed the following selected transactions:
a.The business received $12,000 in cash and a building valued at $52,000. The corporation issued stock to the contributors of these.
b.Borrowed $15,800 from the bank and signed a note payable to them
c.Paid $12,000 for equipment
d.Purchased supplies on account for $200
e.Paid employees’ salaries of $2,100
f.Performed services for customer on account, $2,800
g.Paid $100 of the accounts payable in transaction d above
h.Received a $800 bill for advertising expense that will be paid in the near future
i.Received cash on account, $1,600
j.Paid rent of $1,200
Prepare the journal entries for the above transactions