Question

value: 10.00 points M2-13 Identifying Transactions and Preparing Journal Entries [LO 2-3] J.K. Builders was incorporated on July 1 a. Received $80,000 cash invested by owners and issued common stock. b. Bought an unused field from a local farmer by paying $70,000 cash. As a construction site for smaller projects, it is estimated to be worth $75,000 to J.K. Builders. c. A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $20,000, but the supplier gave J.K. Builders a 15 percent discount. J.K. Builders has not yet received the $17,000 bill from the supplier. d. Borrowed $35,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years. e. One of the owners sold $20,000 worth of his common stock to another shareholder for $21,000 Prepare journal entries for the above transactions from the first month of business. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 4 Received $80,000 cash invested by owners and issued common stock. Record the transaction Note: Enter debits before credits. Transaction General Journal Debit Credit Cash 80,000 Common Stock 80,000 Record entry Clear entry View general journal

Answer 1

a	Cash	80000
	Common Stock		80000
b	Land	70000
	Cash		70000
c	Supplies	17000
	Accounts Payable		17000
d	Cash	35000
	Notes Payable (long-term)		35000
e	No journal entry required