Question: Express the following transactions of Winkle Grocery Store Inc in

Express the following transactions of Winkle Grocery Store, Inc., in journal entry form. If an entry is not required, indicate the reason. You may omit explanations for the journal entries. The store:
(1) Receives $30,000 from John Winkle in return for 1,000 shares of the firm’s $30 par value common stock.
(2) Gives a 60-day, 8% note to a bank and receives $5,000 cash from the bank.
(3) Rents a building and pays the annual rental of $12,000 in advance.
(4) Acquires display equipment costing $8,000 and issues a check in full payment.
(5) Acquires merchandise inventory costing $25,000. The firm issues a check for $12,000, with the remainder payable in 30 days.
(6) Signs a contract with a nearby restaurant under which the restaurant agrees to purchase $2,000 of groceries each week. The firm receives a check for the first two weeks’ orders in advance.
(7) Obtains a fire insurance policy providing $50,000 coverage beginning next month. It pays the one-year premium of $1,200.
(8) Pays $600 for advertisements that will appear in newspapers next month.
(9) Places an order with suppliers for $35,000 of merchandise to be delivered next month.

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  • CreatedMarch 04, 2014
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