Exercise 13-3 Cushenberry Corporation had the following transactions. (a) For ea

Question

Exercise 13-3

Cushenberry Corporation had the following transactions.

(a)

For each transaction above, prepare the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

list of accounts:

Accounts Payable
Accounts Receivable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Cash
Common Stock
Cost of Goods Sold
Depreciation Expense
Equipment
Gain on Disposal of Plant Assets
Land
Loss on Disposal of Plant Assets
Paid-in Capital in Excess of Par-Common Stock
Salaries and Wages Expense
Salaries and Wages Payable
Service Revenue

1. Sold land (cost $8,240) for $10,300. 2. Issued common stock at par for $21,200. 3. Recorded depreciation on buildings for $12,400. 4. Paid salaries of $7,200. 5. Issued 1,200 shares of $1 par value common stock for equipment worth $8,100. 6. Sold equipment (cost $10,800, accumulated depreciation $7,560) for $1,296.

Explanation / Answer

Ans. No. General Journal Debit Credit 1 Cash 10300 Land 8240 Gain on sale of land (10300-8240) 2060 2 Cash 21200 Common stock 21200 3 Depreciation expenses 12400 Accumulated Depreciation on Building 12400 4 Salaries expenses 7200 Cash 7200 5 Equipment (1200*6.75) 8100 Common stock (1200*1) 1200 Additional Paid-in Capital [1200*(6.75-1)] 6900 (Common stock issue price = 8100/1200 = 6.75) 6 Cash 1296 Loss on sale of Equipment (10800-1296-7560) 1944 Accumulated Depreciation on Equipment 7560 Equipment 10800

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