Problem

Recording Journal EntriesJefferson Corporation was organized on May 1. 2011. The following...

Recording Journal Entries

Jefferson Corporation was organized on May 1. 2011. The following events occurred during the first month

a. Received $65.000 cash from the five investors who organized Jefferson Corporation.

b. Ordered store fixtures costing $20,000.

c. Borrowed $10,000 cash and signed a note due in two years.

d. Purchased $13,000 of equipment, paying $1,500 in cash and signing a six-month note for the balance.

e. Lent $1,000 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. (Remember that debits go on top and credits go on the bottom, indented.) Be sure to use good referencing and categorize each account as an asset (A), liability (L), or stockholders’ equity (SE). If a transaction does not require a journal entry, explain the reason.

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