Nicole contributes 45k in cash, computer equipment & software with a current mar

Question

Nicole contributes 45k in cash, computer equipment & software with a current market value of $3,024 and office furniture with a market value of $2,016 to the Company. Nicole had originally paid $7,500 and $3,500 for the computer equipment &software and furniture, respectively. Mathew contributes $50,040 in cash to the company. They incorporated as Dog Grooming Company, Inc/ The open a checking account. Record this as one compound journal entry to the General Journal. They each recieved 1000 shares of common stock with a par value of $1.


So I got these journal entries. Are they correct?

Dr. Cash $95,040
Dr. Property, Plant, & Equipment $5,040
Cr. Contributed Capital $100,080

Dr. Cash $2,000
Cr. Common Stock $2,00


A lease is signed for 12 months. Rent is 5k per month due at the beginning of each moth. They pay 10k to the landlord. This includes 5k for the first month and 5k for a security deposit. Expense the first month's rent and record the last months rent as prepaid rent.


Would this journal entry be correct?

Dr. Rent Exp 5k
Dr. Prepaid Rent 5k
Cr. Cash 10k

Explanation / Answer

Yes both your answers are correct

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