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-   -   How to make journal entries (https://www.askmehelpdesk.com/showthread.php?t=468000)

  • Apr 30, 2010, 01:57 AM
    encuz
    How to make journal entries
    How to make journal entries,
    During November 2008 waston Inc, completed the following transaction:
    1. Received $320,000 for $80,000 share of capital stock
    2. Purchased a new building, paying $20,000 cash and issuing a note for $50,000.
    3.Sold equipment for $15,000 cash ( no gain or loss)
    4. Purchased $ 250,000 of inventory, paying 40% down payment and 60% on credit
    5. Purchased $15,000 of inventory on account
    6. Paid for inventory purchased on account ( no.5 above)

    Thank everyone for your help!
  • May 1, 2010, 11:45 AM
    pready

    1. Debit Cash for the amount received
    Credit Common Stock for the Par Value of stock sold
    Credit Additional Paid-in Capital for the difference

    2. Debit Building for the cost
    Credit Cash for the amount paid
    Credit Notes Payable for the difference

    3. Debit Cash for the amount received
    Credit Equipment for the amount

    4. Debit Inventory for the amount
    Credit Cash for the amount paid
    Credit Accounts Payable for the difference

    5. Same as above

    6. Debit Accounts Payable for the amount
    Credit Cash for the amount

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