a) Received cash of $60,000 from two investors ($30,000 each). Each investor was issued 3,000 shares of common stock. b) Borrowed $40,000 from a local bank and signed two notes. The first note for $10,000 requires payment of principal and 10% interest in six months. The second note for $30,000 requires the payment of principal in two years. Interest at 10% is payable each year on July 1, 2025, and July 1, 2026. c) Paid $24,000 in advance for one year's rent on the store building. d) Purchased office equipment from eTronics for $12,000 cash. e) Purchased $60,000 of clothing inventory on account from the Birdwell Wholesale Clothing Company.
a) Received cash of $60,000 from two investors ($30,000 each). Each investor was issued 3,000 shares of common stock. b) Borrowed $40,000 from a local bank and signed two notes. The first note for $10,000 requires payment of principal and 10% interest in six months. The second note for $30,000 requires the payment of principal in two years. Interest at 10% is payable each year on July 1, 2025, and July 1, 2026. c) Paid $24,000 in advance for one year's rent on the store building. d) Purchased office equipment from eTronics for $12,000 cash. e) Purchased $60,000 of clothing inventory on account from the Birdwell Wholesale Clothing Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Intermediate Accounting 1
Record the following Journal Entries.
Transcribed Image Text:a) Received cash of $60,000 from two investors ($30,000 each). Each investor was issued
3,000 shares of common stock.
b) Borrowed $40,000 from a local bank and signed two notes. The first note for $10,000
requires payment of principal and 10% interest in six months. The second note for
$30,000 requires the payment of principal in two years. Interest at 10% is payable each
year on July 1, 2025, and July 1, 2026.
c) Paid $24,000 in advance for one year's rent on the store building.
d) Purchased office equipment from eTronics for $12,000 cash.
e) Purchased $60,000 of clothing inventory on account from the Birdwell Wholesale
Clothing Company.
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