Goldstar Communications was organized on December 1 of the current year and had

Question

Goldstar Communications was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form: Early in January, the following transactions were carried out by Goldstar Communications: Sold capital stock to owners for $35,000. Purchased land and a small office building for a total price of $90, 000, of which $35,000 was the value of the land and $55,000 was the value of the building. Paid 522,500 in cash and signed a note payable for the remaining S67, 500. Bought several computer systems on credit for $9, 500 (30-day open account). Obtained a loan from Capital Bank in the amount of $20, 000. Signed a note payable. Paid the $28,250 account payable due as of December 31. Record the effects of each of the five transactions. Show the totals for all columns after each transaction. (Only enter the dollar amount of the transactions. Indicate the negative effect by entering "-" before the amount. Omit the "$" sign in your response.)

Explanation / Answer

(In $)

Particulars Cash+ Land+ Building+ Office Equipment = NotesPayable+ Accounts payable+ Capital stock 37,000 95,000 125,000 51,250 80,000 28,250 200,000 1.Sold Capital stock +35,000 +35,000 2.Purchased land and building -22,500 +35,000 +55,000 +67,500 3. Purchased computers +9,500 +9,500 4.Loan from capital bank +20,000 +20,000 5.Paid Accounts payable -28,250 -28,250 Balances 41,250 130,000 180,000 60,750 167,500 9500 235,000

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