M2-9 (Algo) Recording Simple Transactions [LO2-4]

Prepare journal entries to record each of the following transactions for the month of January:

A. Borrowed $21,000 from a local bank; the loan is due in 9 months.

B. Lent $5,900 to an affiliate; accepted a note due in one year.

C. Sold to investors 50 additional shares of stock with a par value of $0.10 per share and a market price of $20 per share; received cash.

D. Purchased $25,000 of equipment, paying $7,300 cash and signing a note for the rest due in one year.

E. Declared $8,600 in cash dividends to stockholders, to be paid in February.

Journal entry worksheet Record the receipt of the bank loan of $21,000. Note: Enter debits before credits. Journal entry worksheet Record the $5,900 loan to an affiliate and the acceptance of a note due in one year. Note: Enter debits before credits. Journal entry worksheet Record the sale of 50 additional shares with a par value $0.10 per share and a market price of $20 per share. Note: Enter debits before credits. Journal entry worksheet Record the $25,000 purchase of equipment with $7,300 cash and the rest on a note due in one year. Note: Enter debits before credits. Journal entry worksheet Record the declaration of $8,600 in cash dividends to the stockholders. Note: Enter debits before credits