Question

CALCULATOR FULL SCREEN PRINTER VE Exercise 17-03 a Cushenberry Corporation had the following transactions. 1. Sold land (cost $8,000) for $10,000. 2. Issued common stock at par for $20,800. 3. Recorded depreciation on buildings for $12,200. 4. Paid salaries of $7,300. 5. Issued 1,400 shares of $1 par value common stock for equipment worth $9,100. 6. Sold equipment (cost $11,800, accumulated depreciation $8,260) for $1,416. (a) For each transaction above, prepare the journal entry. (Credit account titles are automatically indented when amount is entered. Do not i No. Account Titles and Explanation Debit Credit

Answer 1

Required journals are as below:

LILUL Cash $10,000 Land $8,000 Profit on sale of land $2,000 2. Cash $20,800 Common stock $20,800 3. Depreciation expense $12,200 Accumulated depreciation -- Building $12,200

Salaries and Wages expenses $7,300 Cash $7,300 Equipment $9,100 Common stock $1,400 Premium on issue of shares $7,700 Cash $1,416 Accumulated depreciation $8,260 Loss on sale of equipment $2,124 Equipment $11,800

Note for point 6: Loss on sale of equipment = Cost – (Cash + Accumulated depreciation)

                                                                        = 11,800 – (1,416 + 8,260)

                                                                        = 11,800 – 9,676

                                                                        = 2,124