Question

The following events occurred for Johnson Company:

1. Received investment of cash by organizers and distributed to them 1,090 shares of $1 par value common stock with a market price of $25 per share.
2. Purchased $7,800 of equipment, paying $1,400 in cash and owing the rest on accounts payable to the manufacturer.
3. Borrowed $15,000 cash from a bank.
4. Loaned $1,100 to an employee who signed a note.
5. Purchased $20,000 of land; paid $4,000 in cash and signed a note for the balance.

Required:

Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet 2 3 4 5 Record the receipt of cash and the distribution of 1,090 shares of $1 par value common stock with a market price of $25 per share Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Journal entry

No	account and explanation	Debit	Credit
1	Cash (1090*25)	27250
	Common Stock		1090
	Paid in capital in excess of par value-Common Stock		26160
2	Equipment	7800
	Cash		1400
	Account payable		6400
3	Cash	15000
	Bank loan		15000
4	Notes receivable	1100
	Cash		1100
5	Land	20000
	cash		4000
	Notes payable		16000