Kelsey Baker founded GolfDeals.com at the beginning of February. GolfDeals.com sells new and used golf equipment online. The following events occurred in February. a. Borrowed $30,000 cash from a bank, signing a note due in three years. b. Received investment of cash by organizers and distributed to them 500 shares of $0.10 par value common stock with a market price of $30 per share. c. Purchased a warehouse for $115,000, paying $23,000 in cash and signing a note payable for the balance on a 10-year mortgage. d. Purchased computer and office equipment for $20,000, paying $4,000 in cash and owing the rest on accounts payable to the manufacturers. e. Loaned $1,000 to an employee who signed a note due in three months. f. Paid $2,000 to the manufacturers in (d) above. g. Purchased short-term investments for $10,000 cash. Required: For each of the events (a) through (g), prepare journal entries, checking that debits equal credits. Page 87

Kelsey Baker founded GolfDeals.com at the beginning of February. GolfDeals.com sells new and used golf equipment online. The following events occurred in February. a. Borrowed $30,000 cash from a bank, signing a note due in three years. b. Received investment of cash by organizers and distributed to them 500 shares of $0.10 par value common stock with a market price of $30 per share. c. Purchased a warehouse for $115,000, paying $23,000 in cash and signing a note payable for the balance on a 10-year mortgage. d. Purchased computer and office equipment for $20,000, paying $4,000 in cash and owing the rest on accounts payable to the manufacturers. e. Loaned $1,000 to an employee who signed a note due in three months. f. Paid $2,000 to the manufacturers in (d) above. g. Purchased short-term investments for $10,000 cash. Required: For each of the events (a) through (g), prepare journal entries, checking that debits equal credits. Page 87

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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