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Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: Bailey Delivery Company, Inc., was organized in 2018
Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year:
Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year:
- Received cash from investors in exchange for 10,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share.
- Purchased land in Wisconsin for $22,000, signing a one-year note (ignore interest).
- Bought two used delivery trucks for operating purposes at the start of the year at a cost of $13,000 each; paid $6,000 cash and signed a note due in three years for the rest (ignore interest).
- Paid $2,600 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved)
- Sold one-fourth of the land for $5,500 to Pablo Development Corporation, which signed a six-month note.
- Stockholder Helen Bailey paid $28,900 cash for a vacant lot (land) in Canada for her personal use.
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