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25 November, 06:25

Cushenberry Corporation had the following transactions. 1. Sold land (cost $11,360) for $14,200.2. Issued common stock at par for $18,900.3. Recorded depreciation on buildings for $15,730.4. Paid salaries of $8,080.5. Issued 1,170 shares of $1 par value common stock for equipment worth $8,420.6. Sold equipment (cost $10,300, accumulated depreciation $7,210) for $1,236.

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  1. 25 November, 07:34
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    The journal entries are shown below:

    1. Cash A/c Dr $14,200

    To Gain on land A/c $2,840

    To Land $11,360

    (Being the land is sold)

    2. Cash A/c Dr $18,900

    To Common stock A/c $18,900

    (Being the common stock is issued for cash)

    3. Depreciation Expense A/c Dr $15,730

    To Accumulated Depreciation - Buildings A/c $15,730

    (Being depreciation expense is recorded)

    4. Salaries expense A/c Dr $8,080

    To Cash A/c $8,080

    (Being the salaries expense is paid for cash)

    5. Equipment A/c Dr $8,420

    To Common stock A/c $1,170

    To Additional paid-in capital in excess of par value A/c $7,250

    (Being the equipment is purchased)

    6. Cash A/c Dr $1,236

    Accumulated depreciation - Equipment A/c Dr $7,210

    Loss on sale of equipment A/c Dr $1,854

    To Equipment A/c $10,300

    (Being the equipment is sold)
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