Question

J.K. Builders was incorporated on July 1. a. Received $90,000 cash Invested by owners and issued common stock. b. Bought an unused field from a local farmer by paying $80,000 cash. As a construction site for smaller projects, it is estimated to be worth $85,000 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 $30,000, but the supplier gave J.K. Builders a 12 percent discount. J.K. Builders has not yet receved the $26,400 bill from the supplier. d. Borrowed $45,000 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 $30,000 worth of his common stock to another shareholder for $31.000. 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 Requlred" In the first account field.) View transaction list Journal entry worksheet 2 3 4 5 Received $90,000 cash invested by owners and issued common stock. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Transaction	Account Titles and Explanations	Debit	Credit
a	Cash	$   90,000
	Common stock		$   90,000
b	Land	$   80,000
	Cash		$   80,000
c	Supplies	$   26,400
	Accounts payable		$   26,400
d	Cash	$   45,000
	Borrowings/Note payable		$   45,000
e	No Journal entry required

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