Question

Quarter Opening Entries: 1. Sold 100 shares of common stock with a par value of $10 for $12 each 2. Purchased supplies on account for $100 3. Set up an investment account with a deposit of $1000 (APR = 8%), 4. Purchased equipment on account for $1200. Residual Value $200 and useful life 5 yrs 5. Purchased 20 units of inventory for $10 each on account 6. Borrowed $1200 and signed a 3 yr note for 6% APR 7. Prepaid rent for the next 9 months for $135 8. Prepaid insurance for the next 15 months for $300 9. Collected $200 from a customer deposit who plans to stay on one of your properties one week at the end of Q1 and another week at the end of 2 Reminders: o Record and explanation after each entry • List all debits before credits You can only place houses/hotels/solar plants/bullet trains when instructor allows Pass go or land on free parking and collect $200 until told otherwise When in jail you do not collect or pay any cash • If you land on a property and don't want to buy it, it does up to auction All community chess, chance, luxury tax and income tax items go to either misc. rev. or expense

Answer 1

Journal Entries
Events	Particulars	Debit	Credit
1)	Cash	$ 1,200.00
	To Common Stock		$ 1,000.00
	To PIC- in excess of par		$    200.00
	(Being common stock issued)
2)	Supplies	$    100.00
	To Accounts Payable		$    100.00
	(Being supplies purchased on account)
3)	Investment	$ 1,000.00
	To Cash		$ 1,000.00
	(Being an investment account created)
4)	Equipment	$ 1,200.00
	To Accounts Payable		$ 1,200.00
	(Being equipment purchased on account)
5)	Inventory	$    200.00
	To Accounts Payable		$    200.00
	(Being inventory purchased on account)
6)	Cash	$ 1,200.00
	To Notes Payable		$ 1,200.00
	(Being borrowed cash and issued noye)
7)	Prepaid Rent	$    135.00
	To Cash		$    135.00
	(Being rent paid in advance)
8)	Prepaid Insurance	$    300.00
	To Cash		$    300.00
	(Being insurance paid in advance)
9)	Cash	$    200.00
	To Unearned Revenue		$    200.00
	(Being cash collected for a service
	which will be provided at a later date)