J. K. Builders was incorporated on July 1. Prepare journal entries for the following events from the first month of business. If the event is not a transaction, write “no transaction.”
a. Received $ 70,000 cash invested by owners and issued common stock.
b. Bought an unused field from a local farmer by paying $ 60,000 cash. As a construction site for smaller projects, it is estimated to be worth $ 65,000 to J. K. Builders.
c. A lumber supplier delivered lumber supplies to J. K. Builders for future use. The lumber sup-plies would have normally sold for $ 10,000, but the supplier gave J. K. Builders a 10 percent discount. J. K. Builders has not yet received the $ 9,000 bill from the supplier.
d. Borrowed $ 25,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years.
e. One of the owners sold $ 10,000 worth of his common stock to another shareholder for $ 11,000.