135 in to be paid in the following year Journal entry worksh

$135 in to be paid in the following year Journal entry worksheet

Solution

Footcovers\' Inc. Ref. Account Title Debit Credit a Buildings 188 Equipment 250 Cash 406 Note payable 32 (Purchase of building and equipment for cash and on    note payable) b Cash 350 Common stock 200 Additional paid-in-capital - common stock 150 (Issue of 100 shares $2 par common stock for $350) c Retained earnings 135 Dividends payable 135 (Delcaration of dividends payable in future) d Short term investment 7516 Cash 7516 (Pruchase of short term invnstments for cash) e Does not need any entry as it does not affect the company\'s account books. f Cash 4313 Short term investment 4313 (Sales of short term investment for cash at cost)