Exercise 13-3 Cushenberry Corporation had the following transactions . Sold land

Question

Exercise 13-3 Cushenberry Corporation had the following transactions . Sold land (cost $8,400) for $10,500. 2. Issued common stock at par for $23,300. 3. Recorded depreciation on buildings for $16,900 4. Paid salaries of $7,800. 5. Issued 1,400 shares of $1 par value common stock for equipment worth $8,800 6. Sold equipment (cost $12,300, accumulated depreciation $8,610) for $1,476. For each transaction above, prepare the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. Debit Credit 2. 3. 4 5. ta

Explanation / Answer

1.) Bank A/c Dr. $10,500

            To Land A/c    $8,400

            To Profit on sale of Land A/c $2,100

2.) Bank A/c Dr. $23,300

             To Stock/Securities/Common Stock A/c $23,300

3.) Depreciation A/c Dr. $16,900

               To Building A/c    $16,900

4.) Salary A/c Dr. $7,800

                To Bank A/c     $7,800

5.) Equipment A/c Dr. $8,800

          To Common Stock/Securities A/c $1,400 (1,400*$1)

          To Capital Reserve(Gain) A/c         $7,400 (8,800-7,400)

6.) Bank A/c                                Dr. $1,476

     Loss on sale of Equipment A/c Dr. $2,214 (3,690-1,476)

           To Equipment A/c    $3,690 (12,300-8,610)

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