Question

MERCHANDISING ACOUNTING Joe B Joe Blink opened Blink Corporation. It has issued 20.000 shares of $4 par value common stock. Blink anplies the authorized 900,000 share. The corporation is a merchandising business. Blink appies" periodic inventory system. Also Blink provides a 2 vear warranty with one of its produce which was first sold in October. Blink Corporation Trial Balance September 30 Dr. Cash Inventory Land $ 54,000 14,000 45,000 500,000 Plant Building Accumulated Depreciation-plant 200,000 4,000 Equipment 12,000 Accumulated depreciation--equipment Common stock ($4 par) Retained earnings Totals $625,000 80,000 341,000 $625,000 EEEEEEEE Prepare journal entries to record the following merchandising transactions Oct. 1. Issued 412,000 shares of $4 par value common stock for $36 per share. 1. Paid three months' rent on a lease rental contract, $5,800. 1 Issued 12,000 shares $4 par value of common stock to attorneys in payment of their bill of $60,000 for services rendered in helping the company organize. 1 Purchased office equipment on account from Office Station Co. $2,000.

Answer 1

Answer As per the given dala sho r e Cash al dr 14, 832,000 To capital ale CY 1,60Y 000 TO Premium on mium on s shares issued a LY 13184DOO Prepaid are do 5,800 bege Rent To cash ale c 5800 6oooo legal fees ali dr. To capital al CY To Premium on shares U8000 issued 12000 al or quipment al dr 2000 U R TO Office Station are 4 2000 lando de 65,816 to Interest Payable on 34,184 potes Payable are de To notes Payable alle er 100,000 loss on machine ali dr To machine al cr 2000 2000 Cdue to commercial Substance Secadorm

Depreciation al new model alc dr do 4000 16000 To machine are a 10000 To Trade in allowance or 9000 To cash ale co 2000 Cwriting off old machine and recording new model) 1. Purchases acc dr 6000 To accounts payable ak 6000 Accounts receivable ale DY 11500 800 To sales al To Gain on cros salos arc 10,700D 2. cash ale Dr 71,776 To notes 70 Premium payable al cr 7000 on issue On Nlp al 1,796. 2. land arc dr 170.000 To con trebution reserve al CT 170,000 2. Durchases al dy 125 To cash afc cr CInward freight is included in d 125 cost of inventory )

Notes receivable are dy 1500 TO accounts receivable a c 1500 Petty cash fund acc de 200 TO cash a/c cr. 200