Question

transactions a Issued 2,000 shares of $0.01 par value common stock to investors for cash at $20 per share. b. Borrowed $60,000 from the bank to provide additional funding to begin operations, the note is due in two years. c. Paid $1,500 for the current month's rent of a warehouse and another $1,500 for next month's rent. d. Paid $2,400 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense) e. Purchased furniture and fixtures for the warehouse for $15,000, paying $3,000 cash and the rest on account. The amoum f. Purchased for $2,800 cash The University of Pennsylvania, Notre Dame, The University of Texas at Austin, and Michigan g Placed advertisements on Google for a total of $350 cash h Sold caps totaling $1,700, half of which was charged on account. The cost of the caps sold was $900. (Hint: Make two en i. Made full payment for the furniture and fixtures purchased on account in (o). Received $210 from a customer on account Required: Prepare journal entries for each transaction. Note that transaction (h) will require two entries, one for revenue and one for the rel View transaction list Journal entry worksheet < 1 2 3 5 6 8 11 Record placement of advertisement for $350 cash. Note: Enter debits before credits Transaction General Journal Debit Credit g Record entry Clear entry View general journal References eBook & Resources Type here to search BI E

Answer 1

		Debit	Credit
1	Cash	40,000.00
	Common Stock		20.00
	Paid in Capital in excess of par		39,980.00
2	Cash	60,000.00
	Notes Payable		60,000.00
3	Rent Expense	1,500.00
	Prepaid Rent	1,500.00
	Cash		3,000.00
4	Prepaid insurance	2,400.00
	Cash		2,400.00
5	Furniture and Fixture	15,000.00
	Accounts Payable		12,000.00
	Cash		3,000.00
6	Inventory	2,800.00
	Cash		2,800.00
7	Advertisements Expense	350.00
	Cash		350.00
8	Cash	1,700.00
	Accounts Receivable		850.00
	Sales Revenue		850.00
9	Cost of Goods Sold	900.00
	Inventory		900.00
10	Accounts Payable	1,200.00
	Cash		1,200.00
11	Cash	210.00
	Accounts Receivable		210.00