Question

h. Using the Financial Statements of Home Depot. c. Did the company post more you tell? Inc. connect Problem Set A was being organized LO3-3, L03-4, LO3-5 PROBLEM 3.1A Journalizing Transactions Glenn Grimes is the founder and president of Heartland Construction, a real estate venture. The business transactions during February while the company was bein listed as follows. sh in the business in exchange for nich $120,000 was appli- mayment of $72.000 was made Feb. 1 Grimes and several others invested $600,000 cash in the business in e 30,000 shares of capital stock. Feh. 10 The company purchased office facilities for $300,000, of which $120.00 cable to the land and $240,000 to the building. A cash payment of $72.000 and a note payable was issued for the balance of the purchase price Feb. 16 Computer equipment was purchased from PC World for $14.400 cash. Feb. 18 Office furnishings were purchased from Hi-Way Furnishings at a cost of $10.800 S1.200 cash payment was made at the time of purchase, and an agreement was ma to pay the remaining balance in two equal installments due March 1 and April Way Furnishings did not require that Heartland sign a promissory note. Feb. 22 Office supplies were purchased from Office World for $360 cash. Feb. 23 Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $359, but Heartland was charged $395. PC World promised to refund the difference within seven days. Feb. 27 Mailed Hi-Way Furnishings the first installment due on the account payable for office furnishings purchased on February 18. Feb. 28 Received $36 from PCWorld in full settlement of the account receivable created on February 23 Instructions a. Prepare journal entries to record these transactions. Select the appropriate account titles from the following chart of accounts. Cash Land Accounts Receivable Office Building Office Supplies Notes Payable Office Furnishings Accounts Payable Computer Systems Capital Stock

Answer 1

Glenn Grimes Owner's Equity + Capital Stock 600000 Journal Enteries Date Particulars Feb-01 Cash a/c To Capital Stock (Capital invested) Dr. Debit in $ Credit in $ 600000 600000 + + 288000 + + + Dr. Dr. 120000 240000 + Feb-10 Land a/c Building a/c To Cash To Note Payable (Assets purchased) Transaction Assets Feb-01 Cash Feb-10 Land Building Cash Feb-16 Computer Equipment Cash Feb-18 Office Furnishings Cash Feb-22 Office Supplies Cash Feb-23 Accounts Receivable Computer Equipment Feb-27 Cash Feb-28 Cash Accounts Receivable Liabilities 600000 = 120000 = 240000 = -72000 = Note Payable 14400 = -14400 = 10800 = -1200 = Accounts Payable 360 = -360 = 36 = -36 = -4800 = Accounts Payable 36 = -36 = 9600 + 72000 288000 + + + 14400 + Feb-16 Computer Equipment a/c Dr. To Cash (Computer equipment purchased) 14400 -4800 + + 10800 Feb-18 Office Furnishings a/c Dr. To Cash To Accounts Payable (Office Furnishings purchased) 1200 9600 360 Feb-22 Office Supplies a/c Dr. To Cash (Office Supplies purchased) 360 36 Feb-23 Accounts Receivable a/c Dr. To Computer Equipment (Refund for excess) 395 - 359 Dr. 4800 Feb-27 Accounts Payable a/c To Cash (First installment) 4800 36 Feb-28 Cash a/c Dr. To Accounts Receivable Cash from debtors 36