Ask Question
27 December, 05:38

Jameson Corporation was organized on May 1. The following events occurred during the first month. Received $68,000 cash from the five investors who organized Jameson Corporation. Each investor received 103 shares of $10 par value common stock. Ordered store fixtures costing $19,000. Borrowed $17,000 cash and signed a note due in two years. Purchased $18,000 of equipment, paying $1,500 in cash and signing a six-month note for the balance. Lent $1,600 to an employee who signed a note to repay the loan in three months. Received and paid for the store fixtures ordered in (b). Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

+3
Answers (1)
  1. 27 December, 08:11
    0
    The journal entries are shown below:

    1. Cash A/c Dr $68,000

    To Common stock $5,150

    To Additional paid-in capital $62,850

    (Being the cash is received)

    The common stock value is computed by

    = Number of investors * number of shares * par value

    = 5 investors * 103 shares * $10

    = $5,150

    And, the remaining balance is transferred to additional paid-in capital

    2. No journal entry required

    3. Cash A/c Dr $17,000

    To Long term note payable A/c $17,000

    (being cash is borrowed for long term payable)

    4. Equipment A/c Dr $18,000

    To Cash A/c $1,500

    To Short term note payable $16,500

    (Being equipment is purchased for cash and short term note payable)

    5. Short term Notes receivable A/c Dr $1,600

    To Cash $1,600

    (Being cash is paid)

    6. Store fixtures A/c Dr $19,000

    To Cash A/c $19,000

    (being cash is paid for store fixtures)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Jameson Corporation was organized on May 1. The following events occurred during the first month. Received $68,000 cash from the five ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers