tpx Madison Shoes manufactures athletic shoes and sports apparel. The following

Question

tpx Madison Shoes manufactures athletic shoes and sports apparel. The following activities occurred during recent year. The amounts are presented in millions of dollars a. Purchased $254 in equipment, paid by signing a $4 long-term note and fulfilling the rest with cash b. Issued $38 in additional common stock for cash contributions made by stockholders c. Several Madison Shoes investors sold their own stock to other investors on the stock exchange for $190 per share of stock Required: 1. For each of the events above, prepare journal entries (f no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Enter your answers in millions (ie. 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet Purchased $254 in equipment; paid by signing a $4 long-term note and fulfilling the rest with cash. Record the transaction. Note: Enter debits before credits General Journal Debit//Credit Record entry Clear entry View general journal O Type here to search

Explanation / Answer

1. Journal entries in the books of Madison shoes

2. Transaction (c) occurs between the owners and others in the stock market. Hence there is no effect on the business.

Transaction General Journal Debit Credit a. Equipment $254 Long term note $4 Cash $250 b. Cash $38 Contributed capital $38 c. No journal entry required

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