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On July 11, American Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 7,400 shares of $5 par common stock with a

On July 11, American Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 7,400 shares of $5 par common stock with a current market price of $35.

Journalize the entry to record the transaction. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

American Lift Corporation

General Ledger

ASSETS

110

Cash

120

Accounts Receivable

131

Notes Receivable

132

Interest Receivable

141

Merchandise Inventory

145

Office Supplies

151

Prepaid Insurance

181

Land

193

Equipment

194

Accumulated Depreciation-Equipment

LIABILITIES

210

Accounts Payable

221

Notes Payable

226

Interest Payable

231

Cash Dividends Payable

236

Stock Dividends Distributable

241

Salaries Payable

261

Mortgage Note Payable

EQUITY

311

Common Stock

312

Paid-In Capital in Excess of Par-Common Stock

315

Treasury Stock

321

Preferred Stock

322

Paid-In Capital in Excess of Par-Preferred Stock

331

Paid-In Capital from Sale of Treasury Stock

340

Retained Earnings

351

Cash Dividends

352

Stock Dividends

390

Income Summary

Journalize the entry to record the transaction. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

1

2

3

REVENUE

410

Sales

610

Interest Revenue

EXPENSES

510

Cost of Merchandise Sold

515

Credit Card Expense

520

Salaries Expense

531

Advertising Expense

532

Delivery Expense

533

Selling Expenses

534

Rent Expense

535

Insurance Expense

536

Office Supplies Expense

537

Organizational Expenses

562

Depreciation Expense-Equipment

590

Miscellaneous Expense

710

Interest Expense

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