Express the following transactions of the Harris Grocery Store, a sole proprietorship, in journal-entry form. You may
Question:
Express the following transactions of the Harris Grocery Store, a sole proprietorship, in journal-entry form. You may omit explanations for the journal entries.
(1) John Harris contributes $25,000 cash to help set up the grocery store.
(2) A 60-day, 8-percent note is signed in return for an $8,000 loan from the bank.
(3) A building is rented, with the annual rental of $5,000 paid in advance.
(4) Display equipment costing $8,000 is acquired. A check is issued.
(5) Merchandise inventory costing $25,000 is acquired. A check for $4,000 is issued, with the remainder payable in 30 days.
(6) A contract is signed with a nearby restaurant under which the restaurant agrees to purchase $4,000 of groceries each week. A check is received for the first 2 weeks’ orders in advance.
Step by Step Answer:
Financial Accounting An Introduction To Concepts Methods And Uses
ISBN: 9780030452963
2nd Edition
Authors: Sidney Davidson, Roman L. Weil, Clyde P. Stickney