Solve the following: NAME and CSU ID ACT 221 Quiz Chapter 2. Susie has decided t
ID: 2504345 • Letter: S
Question
Solve the following:
NAME and CSU ID ACT 221 Quiz Chapter 2. Susie has decided to start a business. She has several transactions in June, prior to opening for business. Prepare the following journal entries in proper format 1. Issues 2,000 shares of stock and receives $32,000 cash. 2. Purchases a Building for $180,000, paying S10,000 in cash, and signing a note at the bank to repay the loan in 3 years. 3. Purchased supplies for $1,200 and promised to pay by the end of the month. 4. Paid for the supplies purchased in (3) above. 5. Prepare a T-Account for cash. Calculate the ending balance in the Cash Account, assuming a beginning balance in Cash $1,850.Explanation / Answer
JOURNAL ENTERIES
1] DEBIT CASH = 32000
CREDIT COMMON STOCK = 32000
2]DEBIT BUILDING = 180000
CREDIT CASH = 10000
CREDIT NOTE PAYABLE = 170000
3]DEBIT SUPPLIES = 1200
CREDIT ACCOUNTS PAYABLE = 1200
4]DEBIT ACCOUNTS PAYABLE = 1200
CREDIT CASH = 1200
5]
Dr.
PARTICULARS
AMOUNT($)
Cr.
PARTICULARS
AMOUNT($)
TO OPENING BALANCE b/d
1850
2)
BY BUILDING
10000
1)
TO COMMON STOCK
32000
4)
BY ACCOUNTS PAYABLE
1200
BY CLOSING BALANCE c/d
22650
TOTAL
33850
TOTAL
33850
JOURNAL ENTERIES
1] DEBIT CASH = 32000
CREDIT COMMON STOCK = 32000
2]DEBIT BUILDING = 180000
CREDIT CASH = 10000
CREDIT NOTE PAYABLE = 170000
3]DEBIT SUPPLIES = 1200
CREDIT ACCOUNTS PAYABLE = 1200
4]DEBIT ACCOUNTS PAYABLE = 1200
CREDIT CASH = 1200
5]
Dr.
PARTICULARS
AMOUNT($)
Cr.
PARTICULARS
AMOUNT($)
TO OPENING BALANCE b/d
1850
2)
BY BUILDING
10000
1)
TO COMMON STOCK
32000
4)
BY ACCOUNTS PAYABLE
1200
BY CLOSING BALANCE c/d
22650
TOTAL
33850
TOTAL
33850
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