Question

Following are the transactions of JonesSpa Corporation, for the month of January a. Borrowed $25,000 from a local bank. b. Lent $9,000 to an affiliate; accepted a note due in one year, c. Sold to investors 60 additional shares of stock with a par value of $0.10 per share and a market price of $10 per share; received cash. d. Purchased $19,000 of equipment, paying $4,100 cash and signing a note for the rest due in one year. e. Declared $1,400 in cash dividends to stockholders, to be paid in February es For each of the preceding transactions, post the effects of the transaction in the appropriate T-accounts. Beginning balances are provided.

Answer 1

Cash		Notes receivable
Beg. Bal.	1,100			Beg. Bal.	2,800
a	25,000	9,000	b	b	9,000
c	600	4,100	d
End. Bal.	13,600		…………	End. Bal.	11,800		…………
Equipment	Notes payable
Beg. Bal.	18,000			Beg. Bal.		2,800
d	19,000					14,900	d
End. Bal.	37,000			End. Bal.		17,700
Dividends payable	Common stock
Beg. Bal.		0		Beg. Bal.		2,500
e	1,400					25,000	a
						6	c
End. Bal.	1,400			End. Bal.		27,506
Additional paid-in capital	Retained earnings
Beg. Bal.		900		Beg. Bal.		15,700
		594	c	e	1,400
End. Bal.		1494		End. Bal.		14,300