Question

2B-3. (Similar to problem 2B-1) Show the journal entries for these transactions. a. Investors purchase common stock in a corporation for $64,000. b. The purchase of supplies for $8,000 cash. c. Providing $39,000 of services for $21,000 cash and $18,000 on account. d. Purchase of equipment for $18,000 on account e. Payment of employee salaries in the amount of $27,000 cash. f. Borrowing $39,000 from the bank on a note. g. Payment of $8,000 toward the equipment purchased in d. h. Collection of $8,000 of the amount due as a result of the services provided in c. i. Declaration and payment of a dividend of $7,000.

Answer 1

page-1 Given data that 0 Investoglo pugicbose com puestogs purchase common stock in a Cosypostation fog $ 64,000 2) The pusychase of supplies fom $8,000 cash 3) Poyoviding $ 39,000 of Seguices fosu $21,000 and $ 18,000 Omst Account: 4) Purchase of equipment fos $ 18,000 on Account

Page 2 Date Descaliption cash Common stock Debit Caledit 64.000 64,000 To Record sal Becond sale of stock to Investogus Supplies Empense 8,000 Cash 8,000 To Recould puschase of Supplies 21,000 18,000 39,000 Cash Accounts Receivable Seguices Revenue To Recogid Poovision of qseopuice fosy pasity cash and pasty on Account 18,000 18,000 Equipment Accounts payable TO Recoed pugchase of Equipment on Account

Page 3 falasies Expense 24,000 Cash 27,000 To Recogid payment of Salaries 39,000 39,000 Casb Notes payable To Becosyd b08l9owing from bank Accounts payable Cash To Recoed payment fosy Equipment 8,000 8,000 Cash 8,000 8,000 Accounts Receivable To Recogid Receipt of peopuice Revenue Dividends 4,000 Cash 7,000 To Recognd payment of dividends