KJSC$,$ Inc. $-$ Using the following information, create journal entries and t$-$accounts ON A SEPARATE PIECE OF PAPER.

PLEASE NOTE $-$ these facts will only be presented in this question. You will need your prepared journal entries and t$-$accounts to answer the remaining questions. You will then need this information to answer the following $6$ multiple choice questions.

During $20$X$5$ the following transactions occurred for KJSC$,$ Inc.:

On January $1,$ the company issued $2,000$ shares of stock for $$40\mathrm{.}00$ per share

On January $1,$ the company borrowed $$260,000$ from the bank. The loan was at $5\%.$

Purchased land for $$140,000$

Purchased $1,600$ Jarretts at $$200$ each in cash

Sold $1,000$ Jarretts for $$400$ each

Paid cash for wages of $$75,000$

Paid twelve months' rent of $$12,000$

Paid $$23,000$ for advertising for $20$X$5$

Sold $500$ shares of common stock for $$40\mathrm{.}00$ a share on September $30,20$X$5$

Paid Utility bill for $20$X$5$ of $$14,000$

On December $31,$ paid payment on Note Payable of $$20,000$ principal plus $$13,000$ interest

Paid a $$5,000$ dividend to shareholders on December $31,20$X$5$

Also, during the year, the company paid $50\%$ of their $20$X$5$ taxes. The tax rate is $30\%.$

At December $31,20$X$5,$ the company owed $$6,000$ in wages which had not yet been paid.

There are seven $(7)$ journal entries to record.

To include the description of the journal entry $-$ there is a box call "explanation."

There maybe more lines than needed in the journal entry.

Answer rating: 100% (QA)

ANSWER Based on the provided information here are the journal entries for the transaction... View the full answer