Question

Question 13

Following the transaction of Dennen, Inc for the month of January

Borrowed $30,000 from a local bank,

Lent 10,000 to affiliate due in 1 year,

Sold to an investor 100 additional share with a .10 per share and a market price of $5 per share and received cash,

Purchased $15,000 on equipment paying $5,000 cash and signing a note for the rest due in 1 year,

Declared and paid $2,000 in dividends to stockholders.

Prepare the journal entry record each of the above transaction for the month of January.

(If no entry is required for transaction, select “No journal entry required in the first account field).

No             Transaction               General Journal           Debit              Credit

Answer 1

Transaction	General Journal	Debit	Credit
a.	Cash	$         30,000
	Notes Payable		$         30,000
	(Borrowed cash from Local Bank)
b.	Notes Receivable	$         10,000
	Cash		$         10,000
	(Notes Receivable due in a year for cash lent to affiliate)
c.	Cash ($5 x 100 shares)	$              500
	Common Stock ($0.10 x 100 shares)		$                10
	Additional Paid-in Capital ($4.90 x 100 shares)		$              490
d.	Equipment	$         15,000
	Cash		$          5,000
	Notes Payable		$         10,000
	(Purchased Equipment for cash and note due in one year)
e.	Retained Earnings	$           2,000
	Cash		$          2,000
	(Paid Dividends to Stockholders)