Journal entries. Record each of the following transactions in general journal fo
ID: 2377778 • Letter: J
Question
Journal entries. Record each of the following transactions in general journal format.
a) Issued 50,000 shares of $1 par capital stock for $35 dollars
b) Billed customers for services provided, $10,000
c) Purchased supplies on account, $3,000
d) Paid monthly utility bill, $1,500
e) Verified 20 percent increase in market price of stock
f) Paid wages for the current month, $6,000
g) Purchased equipment with a list price of $50,000 by making a 20 percent down payment and financing the remainder with a six-month,12 percent note payable.
h) Collected cash from customers, $5,000
i) Paid vendors, $1,400
j) Recorded one month's accrued interest on note payable
Explanation / Answer
Journal Entry Particulars Debit Credit a) Issued 50,000 shares of $1 par capital stock for $35 dollars Cash $ 1,750,000.00 Common Stock $ 50,000.00 Additional Paid in Capital $ 1,700,000.00 b) Billed customers for services provided, $10,000 Account Recievable $ 10,000.00 Revenue $ 10,000.00 c) Purchased supplies on account, $3,000 Supplies $ 3,000.00 Accounts Payable $ 3,000.00 d) Paid monthly utility bill, $1,500 Utility Expenses $ 1,500.00 Cash $ 1,500.00 e) Verified 20 percent increase in market price of stock No Entry f) Paid wages for the current month, $6,000 Wages $ 6,000.00 Cash $ 6,000.00 g) Purchased equipment with a list price of $50,000 by making a 20 percent down payment and financing the remainder with a six-month,12 percent note payable. Equipment $ 50,000.00 Cash $ 10,000.00 12 %Notes Payable $ 40,000.00 h) Collected cash from customers, $5,000 Cash $ 5,000.00 Account Recievable $ 5,000.00 i) Paid vendors, $1,400 Accounts Payable $ 1,400.00 Cash $ 1,400.00 j) Recorded one month's accrued interest on note payable Interest on Notes Payable $ 400.00 12% Note Payable $ 400.00
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