Question

J.K. Builders was incorporated on July 1 a. Received $86,000 cash invested by owners and issued common stock b. Bought an unused field from a local farmer by paying $76,000 cash. As a construction site for smaller projects, it is estimated to be worth $81,000 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 $26,000, but the supplier gave J.K. Builders a 12 percent discount. J.K. Builders has not yet received the $22,880 bill from the supplier d. Borrowed $41,000 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 $26,000 worth of his common stock to another shareholder for $27,000 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 2 4 Received $86,000 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

Ans:

J.K Builders
JOURNAL
Date	Account Title & Explanation	Debit $	Credit $
a	Cash	$86,000
	Common stock		$86,000
	(Entry for received cash and Issued common stock)
b	Land	$76,000
	Cash		$76,000
	(Entry for purchase of land by paying cash of 76,000)
c	Supplies	$22,880
	Accounts payable		$22,880
	(Entry for purchased supplies and received 12% discount) ($26,000 - $26,000*12%)
d	Cash	$41,000
	Loan payable/Notes payable		$41,000
	(Entry for Borrowed $41,000 from the bank)
e	No journal entry required

As one of the owner sold his common stock to another shareholder so there will be no Transaction for the company as a whole