Journalize the following transactions for the firm that began operations on 1/1/of 23. Create the Debit and Credit for each of the following 8 transactions. January 2 Issued 10,000 shares of common stock for $100,000. Par value at $1 January 2 Bought a building: cost $70,000 paid $10,000 in cash and borrowed the balance from XYZ bank. ( no salvage value, 5 year life, straight line method used) Bought inventory during the year from various suppliers on account for $80,000. During the year, sold inventory cost was $60,000 for $130,000 on account. In 2023 paid employees $30,000 for wages performed. In 2023, collected $90,000 from customers related to sales on account. In 2023 paid suppliers $56,000 related to purchases on account. On December 31, recognized depreciation expense of $14,000 on the building.
Journalize the following transactions for the firm that began operations on 1/1/of 23. Create the Debit and Credit for each of the following 8 transactions. January 2 Issued 10,000 shares of common stock for $100,000. Par value at $1 January 2 Bought a building: cost $70,000 paid $10,000 in cash and borrowed the balance from XYZ bank. ( no salvage value, 5 year life, straight line method used) Bought inventory during the year from various suppliers on account for $80,000. During the year, sold inventory cost was $60,000 for $130,000 on account. In 2023 paid employees $30,000 for wages performed. In 2023, collected $90,000 from customers related to sales on account. In 2023 paid suppliers $56,000 related to purchases on account. On December 31, recognized depreciation expense of $14,000 on the building.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Journalize the following transactions for the firm that began operations on 1/1/of 23. Create the Debit and Credit for each of the following 8 transactions.
- January 2 Issued 10,000 shares of common stock for $100,000. Par value at $1
- January 2 Bought a building: cost $70,000 paid $10,000 in cash and borrowed the balance from XYZ bank. ( no salvage value, 5 year life,
straight line method used) - Bought inventory during the year from various suppliers on account for $80,000.
- During the year, sold inventory cost was $60,000 for $130,000 on account.
- In 2023 paid employees $30,000 for wages performed.
- In 2023, collected $90,000 from customers related to sales on account.
- In 2023 paid suppliers $56,000 related to purchases on account.
- On December 31, recognized
depreciation expense of $14,000 on the building.
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