Question
Feb.1 Grimes and several others invested $700,000 cash in the business in exchange for 30,000 shares of capital stock. Feb.10 The company purchased office facilities
Feb.1Grimes and several others invested $700,000 cash in the business in exchange for 30,000 shares of capital stock.
Feb.10The company purchased office facilities for $300,000, of which $100,000 was applicable to the land and $200,000 to the building. A cash payment of $60,000 was made and a note payable was issued for the balance of the purchase price.
Feb.16Computer equipment was purchased from PCWorld for $13,300 cash.
Feb.18Office furnishings were purchased from Hi-Way Furnishings at a cost of $9,850. A $985 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. Hi-Way Furnishings did not require that Heartland sign a promissory note.
Feb.22Office supplies were purchased from Office World for $325 cash.
Feb.23Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $350, but Heartland was charged $385. PCWorld promised to refund the difference within seven days.
Feb.27Mailed Hi-Way Furnishings the first installment due on the account payable for office furnishings purchased on February 18.
Feb.28Received $35 from PCWorld in full settlement of the account receivable created on February 23.
Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts.
Cash Land
Accounts Receivable Office Building
Office Supplies Notes Payable
Office Furnishings Accounts Payable
Computer Systems Capital Stock
Feb. 1$ 700,000Cash$
700,000Capital stockFeb. 10100,000selected answer correct
Landselected answer correct
not attempted
not attempted
60,000selected answer incorrect
Cashselected answer incorrect
200,000selected answer correct
Office buildingselected answer correct
not attempted
not attempted
240,000selected answer incorrect
Notes payableselected answer incorrect
not attempted
not attempted
not attempted
not attempted
not attempted
not attempted
Feb. 1613,300selected answer correct
Computer systemsselected answer correct
not attempted
not attempted
13,300selected answer incorrect
Cashselected answer incorrect
not attempted
not attempted
not attempted
not attempted
not attempted
not attempted
Feb. 189,850selected answer correct
Office furnishingsselected answer correct
not attempted
not attempted
985selected answer incorrect
Cashselected answer incorrect
not attempted
not attempted
not attempted
not attempted
8,865selected answer incorrect
Accounts payableselected answer incorrect
Feb. 22325selected answer correct
Office Suppliesselected answer correct
not attempted
not attempted
325selected answer incorrect
Cashselected answer incorrect
not attempted
not attempted
not attempted
not attempted
not attempted
not attempted
Feb. 2335selected answer correct
Accounts receivableselected answer correct
not attempted
not attempted
not attempted
not attempted
325selected answer incorrect
Computer systemsselected answer correct
not attempted
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not attempted
Feb. 274,073selected answer incorrect
Cashselected answer correct
not attempted
not attempted
not attempted
not attempted
Feb. 2835selected answer correct
Cashselected answer correct
not attempted
not attempted
not attempted
not attempted
not attempted
not attempted
not attempted
not attempted
not attempted
not attempted
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