Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Create a journal for these entries Jan 1 You sell 100,000 shares of $1 par, common stock to yourself and your sibling (200,000 shares total)

Create a journal for these entries

Jan 1 You sell 100,000 shares of $1 par, common stock to yourself and your sibling (200,000 shares total) for

$400,000.

Jan 2 Office equipment is purchased for $36,000 that is expected to last three years.

Jan 2 To establish a letter of credit, you borrow $10,000 from First National Bank by signing a note payable.

The interest rate is 12%.

Jan 3 You pay $2,000 for office supplies.

Jan 3 You pay rent on building space in a strip shopping center for a year $24,000.

Jan 4 You purchase a two-year liability policy for $12,000.

Jan 5 You purchase 10,000 units of merchandise inventory for $20,000

Jan 9 You make your first sale of 4,000 units of your product for $20,000. This is a credit sale.

Jan 15 You make a sale of 6,000 units for $30,000. This is a cash sale.

Jan 16 You purchase 20,000 units of merchandise inventory at $40,000.

Jan 20 You collect the cash from the sale made on January 9.

Jan 21 A credit sale of 2,000 units is made for $10,000.

Jan 22 The merchandise purchased on January 21 is returned in perfect condition.

Jan 24 - A cash sale of 3,000 units for $15,000 is made.

Jan 25 You invest some extra cash in short-term marketable securities $10,000.

Jan 30 You receive and pay the electric bill of $1,000.

Please do not answer if they are incomplete. I have the entries down but I need to see which ones are wrong on my end.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

14th Edition

1292209178, 9781292209173

More Books

Students also viewed these Accounting questions