Question

Kelsey Baker founded GolfDeals.com at the beginning of February. GolfDeals.com sells new and used golf equipment online. The following events occurred in February. a. Borrowed $33,000 cash from a bank, signing a note due in three years. b. Received investment of cash by organizers and distributed to them 800 shares of $0.10 par value common stock with a market price of $20 per share. C. Purchased a warehouse for $121,000, paying $26,000 in cash and signing a note payable for the balance on a 10-year mortgage. d. Purchased computer and office equipment for $23,000, paying $5,500 in cash and owing the rest on accounts payable to the manufacturers. e. Loaned $2,500 to an employee who signed a note due in three months. f. Paid $3,500 to the manufacturers in (d) above. g. Purchased short-term investments for $13,000 cash. Required: Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Credit Transaction (a) General Journal Cash Notes payable Debit $ 33,000 $33,000 (b) $ 16,000 Cash Common Stock Additional paid in capital -common stock $ 80 $15,920 Warehouse Cash Notes Payable $121,000 $26,000 $95,000 (d) $ 23,000 Computer and office equipment Cash Accounts payable $ 5,500 $17,500 (e) Notes Receivable Cash $ 2,500 $ 2,500 (0) Accounts Payable Cash $ 3,500 $ 3,500 (9) Short-term investment Cash $ 13,000 $13,000 Note : Please comment down for any further clarifications. Note : Do Comment if there is any issue with Account Titles, I'll Help