126 the abc corporation was formed on january 1 2016 the three initial owners each i 4314247

126 the abc corporation was formed on january 1 2016 the three initial owners each i 4314247

126.The ABC Corporation was formed on January 1, 2016. The three initial owners each invested $100,000 cash and each received 10,000 shares of $1 par value common stock. Below are selected transactions that were completed during January, 2016.

1. Issue shares of common stock to the owners.
2. Borrowed $80,000 on a one-year note payable.
3. Purchased land by signing a $70,000 note payable.
4. Paid $10,000 of accounts payable.
5. Purchased two service vehicles for cash at a cost of $24,000 each.
6. Purchased $2,000 of supplies on credit.

Requirement:

Prepare the journal entry on ABC's books for each transaction. Include a brief explanation for each entry.  
 

127.The accounts with identification letters for Ward Company are listed below.

LetterAccount Title

ACash

BAccounts receivable

COffice supplies inventory

DEquipment

ELand

FAccounts payable

GNotes payable

HCommon stock

IAdditional paid-in capital

JRetained earnings

During 2016, the company completed the transactions given below. You are to indicate the appropriate journal entry for each transaction by giving the account letter and amount. Some entries may need three letters. The first transaction is provided as an example.

 TransactionDebitCredit

  LetterAmountLetterAmount

1.Borrowed $50,000 and signed a note.A$50,000G$50,000

2.Purchased equipment for $50,000. Paid $10,000 cash, signed $40,000 note payable.                              

3.Collected $15,000 of accounts receivable.   

4.Paid $12,000 of accounts payable.   

5.Issued 10,000 shares of $10 par value common stock in exchange for $160,000 cash.                              

6.Purchased $5,000 office supplies on credit.   

7.Paid for the office supplies in (6).   

 

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts