On 2 May 2022, Elon Musk began a new business, called Space W Inc., company producing food in pills by transforming the air and plants, with the idea of delivering low cost food to all the world citizens. The following transactions were completed by the business during May:

2 May        Issued to Elon 1,000 shares of capital stock in exchange for his investment of 5,120,000€ cash.

3 May        Purchased land and a building for 1,530,000€ paying 800,000 cash and signing a note payable for the balance. The interest rate for the Note payable is 3% on annual terms, and it will be paid at maturity which will be may 3^rd 2024. The land was considered to be worth 630,000€ and the building the remaining amount.

4 May        Purchased robots for 4,000,000€ in order to be prepared for the production, and paid cash.

5 May        Sold pills for 500,000€ to be paid at the end of the month to the customer Prometeus.

31 May      Collected the Accounts Receivable in full.

 

Instructions:

(1) Record the journal entries for the above transactions. 

(2) Post the journal entries onto the appropriate ledger T accounts. 

Answer rating: 100% (QA)

Lets record the journal entries for the transactions in May for Space W Inc 1 Record the journal ent... View the full answer