FA 3A

Problem 3.1A (Algo) Journalizing Transactions (LO3-3, LO3-4, LO3-5) Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions during February while the company was being organized are listed as follows. Feb. 1 Grimes and several others invested $600,00 cash in the business in exchange for 30, eee shares of capital stock. Feb. 10 The company purchased office facilities for 270,000, of which $90,000 was applicable to the land and $180,eee to the building. A cash payment of $54,800 was made and a note payable was issued for the balance of the purchase price. Feb. 16 Computer equiptent was purchased from PCWorld for $14,200 cash. Feb. 18 Office furnishings were purchased from Hi-Way Furnishings at a cost of $9,358. A $935 cash payment was made at the time of purchase, and an agreement was made to pay the remaining balance in two equal installments due March 1 and April 1. Riway Furnishings did not require that Heartland sign a promissory note. Feb. 22 Office Supplies were purchased from Office World for $355 cash Feb. 23 Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $3se, but Heartland was charged $385. PCWorld promised to refund the difference within seven days. Feb. 27 Molled Hi-Way Furnishings the first installment due on the account payable for office Furnishings purchased on February 18, Feb. 28 Received 535 from PCWorld in full settlement of the account receivable created on February 23. Required: a. Prepare journal entries to record the above transactions Select the appropriate account titles from the following chart of accounts. Cash Accounts Receivable Office Supplies Office Furnishings Computer Systems Land office Building Notes Payable Accounts Payable Capital Stock b. Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. The Feb. 1 transaction is provided for you. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record the above transactions. (If no entry is required for a transaction/avent select "No journal entry required in the first account field. Round your final answers to the nearest dollar amounts.) View transaction list Journal entry worksheet 2 3 14 5 6 7 8 Record the issuance of 30.000 shares of Capital Stock Note Enter debit before credit General Journal Dehit Credit Date Feb. 1