Prepare the journal entries for the following transactions: a) Bought land for 15,000 shares with a $35
Question:
Prepare the journal entries for the following transactions:
a) Bought land for 15,000 shares with a $35 per share market value.
b) Paid six months' rent in advance for a total of $6,000.
c) Paid insurance premiums for the year in the amount of $8,000.
d) Bought a building for $250,000. Paid one-fifth in cash and the balance with a 10-year, 6% interest note payable.
e) Purchased $20,000 of merchandise inventory on credit.
f) Paid utility bill for $450.
g) Sold $8,000 of merchandise inventory for $12,000 on credit.
h) Collected a $10,000 cash deposit from customers for custom orders.
i) Paid salaries and wages of $8,500.
j) Paid $8,000 on merchandise inventory previously purchased in part e).
k) Received $7,000 from customers on account.
l) Declared and paid a $5,000 dividend.
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi