The ABC Corporation was formed on January 1, 2017. The three initial owners each invested $400,000 cash and each received 40,000 shares of $1 par value common stock. Below are selected transactions that were completed during January 2017. 1. Issue shares of common stock to the owners. 2. Borrowed $320,000 on a one-year note payable. 3. Purchased land by signing a $280,000 note payable. 4. Paid $40,000 of accounts payable. 5. Purchased two service vehicles for cash at a cost of $96,000 each. 6. Purchased $8,000 of supplies on credit. Question: Prepare the journal entries on ABC's books for each transaction.

The ABC Corporation was formed on January 1, 2017. The three initial owners each invested $400,000 cash and each received 40,000 shares of $1 par value common stock. Below are selected transactions that were completed during January 2017. 1. Issue shares of common stock to the owners. 2. Borrowed $320,000 on a one-year note payable. 3. Purchased land by signing a $280,000 note payable. 4. Paid $40,000 of accounts payable. 5. Purchased two service vehicles for cash at a cost of $96,000 each. 6. Purchased $8,000 of supplies on credit. Question: Prepare the journal entries on ABC's books for each transaction.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

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The ABC Corporation was formed on
January 1, 2017. The three initial owners
each invested $400,000 cash and each
received 40,000 shares of $1 par value
common stock. Below are selected
transactions that were completed during
January 2017.
1. Issue shares of common stock to the
owners.
2. Borrowed $320,000 on a one-year note
payable.
3. Purchased land by signing a $280,000
note payable.
4. Paid $40,000 of accounts payable.
5. Purchased two service vehicles for cash
at a cost of $96,000 each.
6. Purchased $8,000 of supplies on credit.
Question: Prepare the journal entries on
ABC's books for each transaction.

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