$,$ Practice Problem$\_$Journal$\_$Entry$\_$Sol.pdf

Practice Problem $-$ Journal Entries

Transactions for Tom Petty Inc. for the month of October $2024$ arc presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations.

Issued common stock for $$70,000.$

The firm purchased equipment for $$10,000$ on credit.

The firm purchased land costing $$32,000$ for cash.

Purchased equipment costing $$19,000$ for $$5,000$ cash and the remainder on credit.

Purchased supplies on account for $$800.$

Paid $$1,200$ for a one$-$year insurance policy from Oct. $1,2024$ to Sept. $30,2025.$

Received $$3,000$ cash for services performed.

Received $$4,000$ for services previously performed on account.

Paid wages to employees for $$2,500.$

Declared a dividend of $$10,000.$

Paid $$3,500$ cash on account for equipment purchased in transaction $2.$

Received a bill for $$900$ for advertising for the current month.

Received $$1,800$ for services to be performed in November $2024.$

SOLUTION PROBLEM $3$

Journal Entries