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Georgia Corporation incorporated on September 2, current year. The company engaged in the following transactions during its first month of operations. Sept. 2 Issued capital stock in exchange for $1,170,e00 cash. Sept. 4 Purchased land and a building for $1,08e,0ee. The value of the land was $240,e0e, and the value of the building was $840,0ee. The company paid $120,eee cash and issued a note payable for the balance. Sept. 12 Purchased office supplies for $6e0 on account. The supplies will last for several months. Sept. 19 Billed clients $216,e00 on account. Sept. 29 Recorded and paid salary expense of $72, e0e. Sept. 30 Received $132,eee from clients billed on September 19. A partial list of the account titles used by the company includes the following. Cash Accounts Receivable Notes Payable Accounts Payable

Georgia Corporation incorporated on September 2, current year. The company engaged in the following transactions during its first month of operations. Sept. 2 Issued capital stock in exchange for $1,170,e00 cash. Sept. 4 Purchased land and a building for $1,08e,0ee. The value of the land was $240,e0e, and the value of the building was $840,0ee. The company paid $120,eee cash and issued a note payable for the balance. Sept. 12 Purchased office supplies for $6e0 on account. The supplies will last for several months. Sept. 19 Billed clients $216,e00 on account. Sept. 29 Recorded and paid salary expense of $72, e0e. Sept. 30 Received $132,eee from clients billed on September 19. A partial list of the account titles used by the company includes the following. Cash Accounts Receivable Notes Payable Accounts Payable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions during February while the company was being organized are listed as follows. Feb. 1 Grimes and several others invested $600, e00 cash in the business in exchange for 30,e0e shares of capital stock. Feb. 10 The company purchased office facilities for $277,500, of which $92, 500 was applicable to the land and $185,000 to the building. A cash payment of $55,500 was made and a note payable was issued for the balance of the purchase price. Feb. 16 Computer equipment was purchased from PCWorld for $10,600 cash. Feb. 18 Office furnishings were purchased from Hi-Way Furnishings at a cost of $9,650. A $965 cash payment was made at the time of purchase, and an agreement was made to pay the remaining balance in two equal installments due March 1 and April 1. Hi-Way Furnishings did not require that Heartland sign a promissory note. Feb. 22 Office supplies were purchased from Office World for $405 cash. Feb. 23 Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $360, but Heartland was charged $395. PCWorld promised to refund the difference within seven days. Feb. 27 Mailed Hi-Way Furnishings the first installment due on the account payable for office furnishings purchased on February 18. Feb. 28 Received $35 from PCWorld in full settlement of the account receivable created on February 23. Required: a. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts. Cash Land Accounts Office Supplies Office Furnishings Computer Systems eivable Office Building Notes Payable Accounts Payable Capital Stock
Transcribed Image Text:Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions during February while the company was being organized are listed as follows. Feb. 1 Grimes and several others invested $600, e00 cash in the business in exchange for 30,e0e shares of capital stock. Feb. 10 The company purchased office facilities for $277,500, of which $92, 500 was applicable to the land and $185,000 to the building. A cash payment of $55,500 was made and a note payable was issued for the balance of the purchase price. Feb. 16 Computer equipment was purchased from PCWorld for $10,600 cash. Feb. 18 Office furnishings were purchased from Hi-Way Furnishings at a cost of $9,650. A $965 cash payment was made at the time of purchase, and an agreement was made to pay the remaining balance in two equal installments due March 1 and April 1. Hi-Way Furnishings did not require that Heartland sign a promissory note. Feb. 22 Office supplies were purchased from Office World for $405 cash. Feb. 23 Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $360, but Heartland was charged $395. PCWorld promised to refund the difference within seven days. Feb. 27 Mailed Hi-Way Furnishings the first installment due on the account payable for office furnishings purchased on February 18. Feb. 28 Received $35 from PCWorld in full settlement of the account receivable created on February 23. Required: a. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts. Cash Land Accounts Office Supplies Office Furnishings Computer Systems eivable Office Building Notes Payable Accounts Payable Capital Stock
Georgia Corporation incorporated on September 2, current year. The company engaged in the following transactions during its first month of operations. Sept. 2 Issued capital stock in exchange for $1,17e,e00 cash. Sept. 4 Purchased land and a building for $1,080,000. The value of the land was $240,eee, and the value of the building was $840,000. The company paid $120,000 cash and issued a note payable for the balance. Sept. 12 Purchased office supplies for $600 on account. The supplies will last for several months. Sept. 19 Billed clients $216,000 on account. Sept. 29 Recorded and paid salary expense of $72, e00. Sept. 30 Received $132,0ee from clients billed on September 19. A partial list of the account titles used by the company includes the following. Cash Accounts Receivable Office Supplies Land Building Notes Payable Accounts Payable Capital Stock Client Revenue Salary Expense a. Prepare journal entries for the above transactions. b. Post each entry to the appropriate ledger accounts. c. Prepare a trial balance dated September 30, current year. Assume accounts with zero balances are not included in the trial balance.
Transcribed Image Text:Georgia Corporation incorporated on September 2, current year. The company engaged in the following transactions during its first month of operations. Sept. 2 Issued capital stock in exchange for $1,17e,e00 cash. Sept. 4 Purchased land and a building for $1,080,000. The value of the land was $240,eee, and the value of the building was $840,000. The company paid $120,000 cash and issued a note payable for the balance. Sept. 12 Purchased office supplies for $600 on account. The supplies will last for several months. Sept. 19 Billed clients $216,000 on account. Sept. 29 Recorded and paid salary expense of $72, e00. Sept. 30 Received $132,0ee from clients billed on September 19. A partial list of the account titles used by the company includes the following. Cash Accounts Receivable Office Supplies Land Building Notes Payable Accounts Payable Capital Stock Client Revenue Salary Expense a. Prepare journal entries for the above transactions. b. Post each entry to the appropriate ledger accounts. c. Prepare a trial balance dated September 30, current year. Assume accounts with zero balances are not included in the trial balance.
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