These are the options for the General Journal: No Journal Entry Required Account

Question

These are the options for the General Journal: No Journal Entry Required Accounts Payable Accounts Receivable Accumulated Amortization Accumulated Depreciation—?Buildings Accumulated Depreciation—?Equipment Accumulated Depreciation—?Vehicles Advertising Expense Amortization Expense Bad Debt Expense Buildings Cash Common Stock Copyrights Cost of Goods Sold Delivery Expense Depreciation Expense Dividends Dividends Payable Donation Revenue Equipment Franchise Rights Goodwill Income Tax Expense Income Tax Payable Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Legal Expense Licensing Rights Logo and Trademarks Notes Payable (long-term) Notes Payable (short-term) Notes Receivable (long-term) Notes Receivable (short-term) Office Expenses Patents Prepaid Advertising Prepaid Insurance Prepaid Rent Rent Expense Rent Revenue Repairs and Maintenance Expense Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Service Revenue Short-term Investments Software Subscription Revenue Supplies Supplies Expense Travel Expense Unearned Revenue Utilities Expense Vehicles No Journal Entry Required Accounts Payable Accounts Receivable Accumulated Amortization Accumulated Depreciation—?Buildings Accumulated Depreciation—?Equipment Accumulated Depreciation—?Vehicles Advertising Expense Amortization Expense Bad Debt Expense Buildings Cash Common Stock Copyrights Cost of Goods Sold Delivery Expense Depreciation Expense Dividends Dividends Payable Donation Revenue Equipment Franchise Rights Goodwill Income Tax Expense Income Tax Payable Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Legal Expense Licensing Rights Logo and Trademarks Notes Payable (long-term) Notes Payable (short-term) Notes Receivable (long-term) Notes Receivable (short-term) Office Expenses Patents Prepaid Advertising Prepaid Insurance Prepaid Rent Rent Expense Rent Revenue Repairs and Maintenance Expense Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Service Revenue Short-term Investments Software Subscription Revenue Supplies Supplies Expense Travel Expense Unearned Revenue Utilities Expense Vehicles J.K. Builders was incorporated on July 1 a. Received $77,000 cash invested by owners and issued common stock. b. Bought an unused field from a local farmer by paying $67,000 cash. As a construction site for smaller projects, it is estimated to be worth $72,000 to J.K. Builders. c. Alumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $17,000, but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $15,300 bill from the supplier d. Borrowed $32,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years. e. One of the owners sold $17,000 worth of his common stock to another shareholder for $18,000. Prepare journal entries for the above transactions from the first month of business. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

JK Builders

Journal Entries to record transactions in the first month of business:

Date

Account Titles and Explanation

Debit

Credit

a.

Cash

$77,000

Common Stock

$77,000

(To record issue of common stock)

b.

Land

$67,000

Cash

$67,000

(To record purchase of Land)

c.

Supplies

$15,300

Accounts Payable

$15,300

(To record supplies purchased on account)

d.

Bank

$32,000

Notes Payable

$32,000

(To record loan taken from bank)

e.

No Entry

Date

Account Titles and Explanation

Debit

Credit

a.

Cash

$77,000

Common Stock

$77,000

(To record issue of common stock)

b.

Land

$67,000

Cash

$67,000

(To record purchase of Land)

c.

Supplies

$15,300

Accounts Payable

$15,300

(To record supplies purchased on account)

d.

Bank

$32,000

Notes Payable

$32,000

(To record loan taken from bank)

e.

No Entry

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