Exercise 13-3 Cushenberry Corporation had the following transactions. 1. 2. 3. 4

Question

Exercise 13-3 Cushenberry Corporation had the following transactions. 1. 2. 3. 4. 5. 6. Sold land (cost $8,000) for $10,000. Issued common stock at par for $21,700. Recorded depreciation on buildings for $15,800. Paid salaries of $7,400. 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. (a) For each transaction above, prepare the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 6.

Explanation / Answer

1 Cash Dr          10,000 Land Cr            8,000 Gain on Sale of Land Cr            2,000 2 Cash Dr          21,700 Common Stock Cr          21,700 3 Depreciation on Building Dr          15,800 Accumulated Depreciation - Building Cr          15,800 4 Salary Expense Dr            7,400 Cash Cr            7,400 5 Equipment Dr            8,700 Common Stock Cr            1,000 Paid-In Capital in Excess of Par-Preferred Stock Cr            7,700 6 Bank Dr            1,632 Loss on Sale of Equipment Dr            2,448 Accumulated Depreciation - Equipment Dr            9,520 Equipment Cr          13,600

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