Marigold Corp. had the following transactions. 1. Sold land (cost $8,000) for $1
ID: 2524379 • Letter: M
Question
Marigold Corp. had the following transactions. 1. Sold land (cost $8,000) for $10,000. 2. Issued common stock at par for $21,700. 3. Recorded depreciation on buildings for $15,800. 4. Paid salaries of $7,400 s. Issued 1.000 shares of $1 par value common stock for equipment worth $8,700. Sold equipment (cost $13,600, accumulated depreciation $9,520) for $1,632. 6. For each transaction above, prepare the journal entry. (Credit account tities are automatically in No. Account Titles and Explanation 1. Debit Credit 2. 3. 4. 5. 6,Explanation / Answer
Answers
No.
Accounts titles & Explanations
Debit
Credit
1
Cash
$ 10,000.00
Gain on Sale (Land)
$ 2,000.00
Land
$ 8,000.00
(land sold at profit)
2
Cash
$ 21,700.00
Common Stock
$ 21,700.00
(common stock issued)
3
Depreciation expense
$ 15,800.00
Accumulated Depreciation-Building
$ 15,800.00
(recorded depreciation)
4
Salaries expenses
$ 7,400.00
Cash
$ 7,400.00
(salaries paid)
5
Equipment
$ 8,700.00
Common Stock [$1 x 1000]
$ 1,000.00
Additional paid In capital in excess of par-Common Stock [$7.7 x 1000]
$ 7,700.00
(stock issued to acquire equipment]
6
Cash
$ 1,632.00
Loss on Sale (Equipment)
$ 2,448.00
Accumulated Depreciation-Equipment
$ 9,520.00
Equipment
$ 13,600.00
(equipment sold at loss)
No.
Accounts titles & Explanations
Debit
Credit
1
Cash
$ 10,000.00
Gain on Sale (Land)
$ 2,000.00
Land
$ 8,000.00
(land sold at profit)
2
Cash
$ 21,700.00
Common Stock
$ 21,700.00
(common stock issued)
3
Depreciation expense
$ 15,800.00
Accumulated Depreciation-Building
$ 15,800.00
(recorded depreciation)
4
Salaries expenses
$ 7,400.00
Cash
$ 7,400.00
(salaries paid)
5
Equipment
$ 8,700.00
Common Stock [$1 x 1000]
$ 1,000.00
Additional paid In capital in excess of par-Common Stock [$7.7 x 1000]
$ 7,700.00
(stock issued to acquire equipment]
6
Cash
$ 1,632.00
Loss on Sale (Equipment)
$ 2,448.00
Accumulated Depreciation-Equipment
$ 9,520.00
Equipment
$ 13,600.00
(equipment sold at loss)
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