Question

Required information The following information applies to the questions displayed below.) Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year. a. Received cash from investors in exchange for 10,000 shares of stock (par value of $1.00 per share) with a market value of $4 per share. b. Purchased land in Wisconsin for $16,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $10,000 each; paid $4,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,000 cash to a truck repair shop for a new motor for one of the trucks, (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved.) e. Sold one-fourth of the land for $4,000 to Pablo Development Corporation, which signed a six-month note. 1. Stockholder Helen Bailey paid $27,600 cash for a vacant lot (and) in Canada for her personal use.

Answer 1

D E I - A B C 1 Cash 2 Beg. Bal. $ . 3 a. $ 40,000 $ 4,000 4 f. $ 27,600 $ 1,000 F G H Short term Notes Receivable Beg. Bal. $ - e. $ 4,000 c. d. 6 End. Bal. $62,600 End. Bal. $ 4,000 7 8 e. f. Equipment Beg. Bal. $ . c. $10,000 d. $ 1,000 End. Bal. $ 11,000 Long - term Notes Payable Beg. Bal. $ 6,000 S Land 9 Beg. Bal. $ - 10 b. $ 16,000 $ 4,000 11 $ 12,000 12 13 End. Bal. $ . 14 15 Short-term Notes Payable 16 Beg. Bal. $ - 17 $ 16,000 18 19 End. Bal. $ 16,000 20 Common Stock 22 Beg. Bal. 23 $ 10,000 24 25 End. Bal. $ 10,000 26 - b. c. End. Bal. $ 6,000 21 $ - a. Additional Paid - in Capital Beg. Bal. $ 30,000 $ 15,600 End. Bal. $ 45,600 a. f.

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