Springville Inc. was created to market a new weight loss drink. Record the following entries for the year propertly classifying all items (and note that you will have four separate entries: Jan. 1 Sold 50,000 shares of $10 par value common stock at $13 per share Mar. 15 Issued a 5% note payable for $150,000. It is payable over a 3-year term in $50,000 installments every year plus interest. (You are not recording any interest at this time, just the money gained and the two different note parts) Sept. 1 Purchased (bought back) 500 shares of stock for $9 during a down turn in the market Sept. 5 Sold 200 shares of the repurchased stock for $15 per share Account name Debit Credit
Springville Inc. was created to market a new weight loss drink. Record the following entries for the year propertly classifying all items (and note that you will have four separate entries: Jan. 1 Sold 50,000 shares of $10 par value common stock at $13 per share Mar. 15 Issued a 5% note payable for $150,000. It is payable over a 3-year term in $50,000 installments every year plus interest. (You are not recording any interest at this time, just the money gained and the two different note parts) Sept. 1 Purchased (bought back) 500 shares of stock for $9 during a down turn in the market Sept. 5 Sold 200 shares of the repurchased stock for $15 per share Account name Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Springville Inc. was created to market a new weight loss drink. Record the following entries for the year propertly classifying all items (and note that you will have four separate entries:
| Jan. 1 | Sold 50,000 shares of $10 par value common stock at $13 per share |
| Mar. 15 | Issued a 5% note payable for $150,000. It is payable over a 3-year term in $50,000 installments every year plus interest. (You are not recording any interest at this time, just the money gained and the two different note parts) |
| Sept. 1 | Purchased (bought back) 500 shares of stock for $9 during a down turn in the market |
| Sept. 5 | Sold 200 shares of the repurchased stock for $15 per share |
| Account name |
| Debit | Credit |
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