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. f. Stockholder Helen Bailey paid $27,600 cash for a vacant lot (land) in Canada for her personal use.

Answer 1

BAILEY DELIVERY COMPANY, INC.
Trial Balance
At December 31, 2018
Cash (40,000-4,000-1,000)	35,000
Land (16,000-4,000)	12,000
Trucks (10,000+1,000)	11,000
Note receivable	4,000
Note payable		16,000
Long-term note payable		6,000
Common stock		10,000
Paid in capital in excess of par-Common stock		30,000
Totals	62,000	62,000