Question

J.K. Builders was incorporated on July 1 a Recelved $78,000 cash invested by ow b. Bo ught an unused field from a local farmer by paying $68,000 cash. As a construction site for smaller projects, it is estimated to be worth $73,000 to J.K. Builders. c A lumber supplier delivered lumber supplies to J.K. Builders for future useThe lumber supplies would have normally the suppler gave JK. Buiders a 10 percent discount.J.K. Buliders has not yet received the $16,200 bill from the supplier. d. Borrowed $33,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years. e. One of the owners sold $18,000 worth of his common stock to another shareholder for $19,000 Prepare journal entries for the above transactions from the first month of business. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

	J.K.BUILDERS
	Journal book
Date	Account tittle	Debit $	Credit $
a.	Cash	78,000
	Common Stock		78,000
	( To record cash invested by owner and issued common stock)
b.	Land	68,000
	Cash		68,000
	( To record purchase of field by paying cash , estimated cost not to be accounted )
c	Supplies	16,200
	Goods received not invoiced		16,200
	( To record supplies received but invoice not received. Once bill is received, ' Goods received not invoiced' ledger will transfer to 'Accounts Payable' ledger by passing an additional entry.)
d.	Cash	33,000
	Loan Payable		33,000
	( TO record money borrowed from a bank )
e.	No journal entry is required in the books of company for transfering common stock by one person to another person.