Record the following entries in t-accounts for the first year of our company. a.

Question

Record the following entries in t-accounts for the first year of our company. a. The corporation sells 10,000 shares of stock for $450,000. b. The corporation pays $36,000 for a three-year lease. C. The corporation purchases $3,700 of supplies for cash. d. The corporation buys $41,000 of inventory on account. e. The corporation buys $210,000 of equipment for $180,000 cash and $30,000 notes payable. f. The corporation pays the vendor bill in (d) g. The corporation buys $45,000 of inventory on account again h. The corporation pays the stockholders $10,000 for dividends. i. The corporation has cash sales of $150,000 and credit sales of $20,000. The inventory cost is $70,000. salaries expense. k. The corporation pays $3,500 for utilities expense L. The corporation has $700 of supplies left. m.The corooration used one vear of the lease. 6 8 Z X C N M Alt

Explanation / Answer

a Bank Debit 450000 Shares of Stock Credit 450000 b Lease Asset Debit 36000 Bank Credit 36000 c Supplies Debit 3700 Cash Credit 3700 d Inventory Debit 41000 Accounts Payable Inventory Credit 41000 e Equiment Debit 210000 Cash Credit 180000 Accounts Payable Credit 30000 f Accounts Payable Inventory Debit 41000 Bank Credit 41000 g Inventory Debit 45000 Accounts Payable Inventory Credit 45000 h Dividends Debit 10000 Bank Credit 10000 i Cash Debit 150000 Debtors Debit 20000 To Sales 170000 Sales debit 170000 Inventory Credit 70000 Profit on Sale 100000 j Salaries Debit 25000 Bank Credit 25000 k Utilities Debit 3500 Bank Credit 3500 l Closing Stock 700 m Lease charges Debit 12000 Lease Asset Credit 12000 n Depreciation Debit 30000 Equipment Credit 30000 o Interest On Notes payable Debit 1500 Notes Payable Credit 1500

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