Carolan Delivery Company, Inc., was organized in 2019 in New York. The following transactions occurred during the year: a. Received cash from investors in exchange for 13,000 shares of stock (par value of $1.00 per share) with a market value of $8 per share. b. Purchased land in New York for $22,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $13,000 each; paid $4,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,900 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) e. Sold one-fourth of the land for $5,500 to James Development Corporation, which signed a six-month note. f. Stockholder Margaret Carolan paid $29,300 cash for a vacant lot (land) in Mexico for her personal use. Required: 1. Using the T-accounts, record the effects of transactions (a) through (f) by Carolan Delivery Company.
Carolan Delivery Company, Inc., was organized in 2019 in New York. The following transactions occurred during the year: a. Received cash from investors in exchange for 13,000 shares of stock (par value of $1.00 per share) with a market value of $8 per share. b. Purchased land in New York for $22,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $13,000 each; paid $4,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,900 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) e. Sold one-fourth of the land for $5,500 to James Development Corporation, which signed a six-month note. f. Stockholder Margaret Carolan paid $29,300 cash for a vacant lot (land) in Mexico for her personal use. Required: 1. Using the T-accounts, record the effects of transactions (a) through (f) by Carolan Delivery Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Using the T-accounts, record the effects of transactions (a) through (f) by Carolan Delivery Company.
Beg. Bal.
End. Bal.
Beg. Bal.
End. Bal.
Beg. Bal.
End. Bal.
Beg. Bal.
End. Bal.
Cash
0
Land
0
Short-Term Notes Payable
Common Stock
0
0
Beg. Bal.
End. Bal.
Beg. Bal.
End. Bal.
Beg. Bal.
End. Bal.
Beg. Bal.
End. Bal.
Short-Term Notes Receivable
0
Equipment
0
Long-Term Notes Payable
0
Additional Paid-in Capital
0
Transcribed Image Text:Carolan Delivery Company, Inc., was organized in 2019 in New York. The following transactions occurred during the year:
a. Received cash from investors in exchange for 13,000 shares of stock (par value of $1.00 per share) with a market
value of $8 per share.
b. Purchased land in New York for $22,000, signing a one-year note (ignore interest).
c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $13,000 each; paid
$4,000 cash and signed a note due in three years for the rest (ignore interest).
d. Paid $1,900 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to
record the purchase of the trucks because the productive life of the truck has been improved)
e. Sold one-fourth of the land for $5,500 to James Development Corporation, which signed a six-month note.
f. Stockholder Margaret Carolan paid $29,300 cash for a vacant lot (land) in Mexico for her personal use.
Required:
1. Using the T-accounts, record the effects of transactions (a) through (f) by Carolan Delivery Company.
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