Question

(The following information applies to the questions displayed below.) Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions. 1. January 1 Issue 10,000 shares of common stock in exchange for $36,000 in cash. 2. January 5 Purchase land for $21, 000. A note payable is signed for the full amount. 3. January 9 Purchase storage container equipment for $8,400 cash. 4. January 12 Hire three employees for $2,400 per month. 5. January 18 Receive cash of $12,400 in rental fees for the current month. 6. January 23 Purchase office supplies for $2,400 on account. 7. January 31 Pay employees $7, 200 for the first month's salaries Required: Record each transaction. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first ccount field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Issue 10,000 shares of common stock in exchange for $36,000 in cash. Note: Enter debits before credits. General Journal Credit Transaction January 01 Debit 10,000 10,000 36,000 36,000 Record entry Clear entry View general journal

Answer 1

Journal

Date	Account title	Debit	Credit
January 1	Cash	36,000
	Common stock		36,000
	(To record issue of common stock)
January 5	Land	21,000
	Note payable		21,000
	(To record purchase of land by issuing note payable)
January 9	Storage equipment	8,400
	Cash		8,400
	(To record purchase of Storage equipment)
January 12	No journal entry required
January 18	Cash	12,400
	Rental fees revenue		12,400
	(To record Rental fees revenue)
January 23	Office supplies	2,400
	Accounts payable		2,400
	(To record purchase of office supplies on account)
January 31	Salaries expense	7,200
	Cash		7,200
	(To record Salaries expense)

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