E211 Recording Journal Entries LO24 Nathanson Corporation wa

E2-11 Recording Journal Entries LO2-4 Nathanson Corporation was organized on May 1, 2014. The following events occurred during the first month. a. Received $72,000 cash from the five investors who organized Nathanson Corporation. Each investor received 110 shares of $10 par value common stock b. Ordered store fixtures costing $17,000 c. Borrowed $19,000 cash and signed a note due in two years. d. Purchased $22,000 of equipment, paying $1,700 in cash and signing a six-month note for the balance. e. Lent $1,700 to an employee who signed a note to repay the loan in three months. f. 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.)

Solution

Nathanson Corporation

Please post independent questions separately. Thank you.

No.	Transaction	General Journal	Debit	Credit
1	a.	Cash	72000
		Common stock (5 x 110 x $10)		5500
		Additional paid-in capital		66500
		(To record issue of common stock)
2	b.	No journal entry required
3	c.	Cash	19000
		Notes payable (long-term)		19000
		(To record amount borrowed against note)
4	d.	Equipment	22000
		Cash		1700
		Notes payable (short-term)		20300
		(To record equipment purchased)
5	e.	Notes receivable	1700
		Cash		1700
		(To record loan to employee)
6	f.	Store Fixtures	17000
		Cash		17000
		(To record store fixtures purchased)