Question

Jameson Corporation was organized on May 1. The following events occurred during the first month. a. Received $67,000 cash from the five investors who organized Jameson Corporation. Each investor received 104 shares of $10 par value common stock. b. Ordered store fixtures costing $15,000. c. Borrowed $16,000 cash and signed a note due in two years. d. Purchased $23,000 of equipment, paying $1,800 in cash and signing a six-month note for the balance. e. Lent $1,300 to an employee who signed a note to repay the loan in three months. f. Received and paid for the store fixtures ordered in (b). Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Credit Debit $67,000 . Transaction General Journal a. Cash Common Stock Additional Paid in Capital $ 5,200 $ 61,800 b. No Journal Entry Required C. $ 16,000 Cash Notes Payable-Long Term $ 16,000 d. $ 23,000 Equipment Cash Notes Payable-Short Term $ 1,800 $ 21,200 e. Notes Receivable-Short Term $ 1,300 Cash $ 1,300 f. Store Fixtures cash $ 15,000 $ 15,000 Note : Do comment for any further assistance