Question

O'Brien Construction had the following business activities: 1. Stockholders invest $30,000 cash in the corporation - 2. O'Brien purchased $500 of office supplies on credit 3. O'Brien purchased office equipment for $8,000, paying $1,500 in cash and signing a 30-day note payable for the remainder. 4. O'Brien paid $250 cash on account for office supplies purchased in transaction 2 5. O'Brien purchased two acres of land for $6,000, signing a 2 year note payable. 6. O'Brien sold one acre of land at one-half of the total cost of the two acres, receiving the full amount or $3,000 in cash. 7. O'Brien made a payment of $3,000 on its 2-year note. Required: Prepare journal entries for the above transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

all part of the same question

Answer 1

A.

Transaction	General Journal	Debit	Credit
1	Cash	30,000
	Common stock		30,000
	( To record investment made by owner)

B

Transaction	General Journal	Debit	Credit
2	Supplies	500
	Accounts payable		500
	( To record supplies purchase on credit)

C

Transaction	General Journal	Debit	Credit
3	Equipment	8,000
	Cash		1,500
	Notes payable		6,500
	( To record purchase of equipment by note)

D

Transaction	General Journal	Debit	Credit
4	Accounts payable	250
	Cash		250
	( To record payment of suppliers)

E

Transaction	General Journal	Debit	Credit
5	Inventory	6,000
	Note payable		6,000
	( To record purchase land by note)

F

Transaction	General Journal	Debit	Credit
6	Cash	3,000
	Sales		3,000
	( To record cash sales)

G

Transaction	General Journal	Debit	Credit
7	Note payable	3,000
	Cash		3,000
	( To record payment of note)

Kindly comment if you need further assistance.

Thanks‼!