Exam 3: The Accounting Cycle: Capturing Economic Events

Question

Recording transactions in general journal Enter the following transactions in the two-column journal of Festive Parties, Inc. Include a brief explanation of the transaction as part of each journal entry. June 2 Collected an account receivable of \ 860 from a customer, East, Inc. 5 Issued a check for \ 430 in full payment of an account payable to North, Inc. 9 Borrowed \ 12,000 cash from the bank by signing a 120 -day note payable. 12 Issued an additional 3,000 shares of capital stock in exchange for \ 45,000 cash. 15 Purchased equipment for the business. The price was \ 13,000 , of which \ 3,000 was paid in cash; a note payable was issued for the balance. 21 Acquired office furniture from West Company for \ 1,100 , on account. $Recording transactions in general journal Enter the following transactions in the two-column journal of Festive Parties, Inc. Include a brief explanation of the transaction as part of each journal entry. \begin{array} { | r | r | l | } \hline \text { June } & 2 & \text { Collected an account receivable of } \$ 860 \text { from a customer, East, Inc. } \\ \hline & 5 & \begin{array} { l } \text { Issued a check for } \$ 430 \text { in full payment of an account payable to North, } \\ \text { Inc. } \end{array} \\ \hline & 9 & \begin{array} { l } \text { Borrowed } \$ 12,000 \text { cash from the bank by signing a } 120 \text {-day note } \\ \text { payable. } \end{array} \\ \hline & 12 & \begin{array} { l } \text { Issued an additional } 3,000 \text { shares of capital stock in exchange for } \$ 45,000 \\ \text { cash. } \end{array} \\ \hline &15 & \begin{array} { l } \text { Purchased equipment for the business. The price was } \$ 13,000 \text {, of which } \\ \$ 3,000 \text { was paid in cash; a note payable was issued for the balance. } \end{array} \\ \hline& 21 & \text { Acquired office furniture from West Company for } \$ 1,100 \text {, on account. } \\ \hline \end{array}$

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

The Time Value of Money

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