Tim Construction had the following business activities:

1. Stockholders invest $50,000 cash in the corporation.
2. Tim purchased $800 of office supplies on credit.
3. Tim purchased office equipment for $14,000, paying $5,000 in cash and signing a 30-day note payable for the remainder.
4. Tim paid $400 cash on account for office supplies purchased in transaction 2.
5. Tim purchased two acres of land for $20,000, signing a 2-yearnote payable.
6. Tim sold one acre of land at one-half of the total cost of the two acres, receiving the full amount or $10,000 in cash.
7. Tim made a payment of $10,000 on its 2-year note.

Required:

• Prepare the journal entries that would be used to record the transactions. 

Answer rating: 100% (QA)

1Cash Dr 50000 Common stock 50000 2 Office Supplies ... View the full answer