Question
unsure what exactly I am being asked to do on this but i believe its debited amount in left column and credited in right column. could someone help with this? transactions are in picture

Cash A/R Inventory Prepaid Insurance Land Building АР Salaries Payable Utilities Payable Notes Payable Common Stock Additiona
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You have just incorporated and invested $50.000 of your own money into the company. You are going to need much more capital t
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Answer #1

Prepare journal entry as follows:

Trn. Account Debit Credit
1 Cash (150,000 shares × $10) $1,500,000
Common stock (150,000 shares × $1) $150,000
paid in capital -excess of par (150,000 shares × $9) $1,350,000
2 Cash $1,000,000
Note payable $1,000,000
3 Land $1,500,000
Building $500,000
Cash $2,000,000
4 Prepaid Insurance $2,100
Cash $2,100
5 Inventory $250,000
Cash ($250000/2) $125,000
Accounts payable $125,000
6 Accounts payable $125,000
Cash $125,000
7 Cash $150,000
Sales $150,000
8 Utility expense $1,850
Utility payable $1,850
9 No entry
10 Utility payable $1,850
Cash $1,850
11 Accounts receivable $24,000
Sale $24,000
12 Cash $24,000
Accounts receivable $24,000
13 Salaries payable $13,500
Cash $13,500
14 Accounts receivable $36,000
Sale $36,000
15 Cash $168,000
Sales $168,000
16 Utility expense $1,900
Cash $1,900
17 Dividend $45,000
Cash (150,000 shares × $0.3) $45,000
18 Salaries expense $12,600
Cash $12,600
19 Cash $184,000
Sales $184,000
additional entries
a COGS ($250,000 -$80,000) $170,000
Inventory $170,000
b Income taxes expense $9,600
Income tax payable $9,600
c Utility expense $1,700
Utility payable $1,700
d Salaries expense $7,650
Salaries payable (17 days × $150 per days × 3 ee) $7,650
Emplyee worked from (16 jan. to 31 march) = 75 days
Paid only 58 days
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