Q. Journal Entries The Mandy Corporation was formed on January 1, 2014. The thre

Question

Q. Journal Entries

The Mandy Corporation was formed on January 1, 2014. The three initial owners each invested $90,000 cash and each received 10,000 shares of SI par value common stock. Below are selected transactions that were completed during January, 2014. Sold stock to the owners. Purchased land by signing a $70,000. Delivered goods worth $4,000, which were previously paid for. Purchased machinery equipment for $20,000 of which $15,000 is financed by a bank note and paying $5,000 in cash. Declared dividends of $2,000 to be paid next year.

Explanation / Answer

Journal entries

1. Bank debit $10000

Share capital credit $10000

2. land debit $70000

Bank credit $70000

3.Purchases debit $4000

Bank credit $4000

4.Machinery debit $20000

Bank note credit $15000

Cash credit $5000

5. P& L debit $2000

Proposed dividend credit $ 2000

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