Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 53

Identifying Transactions and Preparing Journal Entries
J.K. Builders was incorporated on July 1, 2013. Prepare journal entries for the following events from the first month of business. If the event is not a transaction, write "no transaction."
a. Received $70,000 cash invested by owners and issued common stock.
b. Bought an unused field from a local farmer by paying $60,000 cash. As a construction site for smaller projects, it is estimated to be worth $65,000 to J.K. Builders.
c. A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $10,000, but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $9,000 bill from the supplier.
d. Borrowed $25,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years.
e. One of the owners sold $10,000 worth of his common stock to another shareholder for $11,000.