Camino Jet Engines, Inc. began operations in January of this year. For the year, the company had the following transactions:

Jan. 1	The company issued 100,000 shares of $2 par value common stock to LJ Porter in exchange for three things: $150,000 in cash, a building valued at $840,000 and land valued at $300,000.
Jan. 1	The company prepaid $84,000 in cash for a 24 month insurance policy.
Feb. 1	The company borrowed $125,000 on a 3-year, 5% installment note payable. The terms of the note require the company to make equal payments of $45,901 each December 31 for 3 years.
Mar. 1	The company provided engine repair services to a customer and received $280,000 in cash.
Jul. 1	The company issued 7% 5-year bonds with par value of $500,000. The bonds were issued at 105% (a premium). Interest payments are due twice each year on June 30 and December 31.
Dec. 31	The company paid the first interest payment on the bonds issued on July 1.
Dec. 31	The company paid $45,901 for its annual installment on the installment note from above. The company must calculate and record both the principal portion and the interest portion for this payment.
Dec. 31	The company declared a $25,000 dividend that is to be paid in cash on February 10 of the next year. The date of record is January 20. Note: The company records dividends in a dividend account which is closed at the end of the year with all other temporary accounts.
	Adjustments needed:
Dec. 31	The company must record a full year of depreciation on the building. The building has an estimated useful life of 30 years and no salvage value. The company depreciates buildings on a straight-line basis.
Dec. 31	The company must record an adjustment for 12 months of insurance expense.

Required:

In the answer area below, enter the general journal entries to record the above transactions and adjustments.

Answer rating: 100% (QA)

General Journal Entries for Camino Jet Engines Inc Jan 1 Stock Issuance Cash 150000 Building 840000 ... View the full answer