to be paid in the fallowing year Journal entry worksheet Sol

to be paid in the fallowing year Journal entry worksheet

Solution

Journal Entries Date Account Title and explanation Debit Credit Building $                        188 1 Equipment $                        250          To Cash $                     406.00          To Long Term Note $                       32.00 (To Record the purchase of Building and equipment in cash and note payable) 2 Cash $                        350        To Common Stock $                           200        To Additional paid in capital - excess on par $                           150 (To Record the isssuance of Common Stock) 3 Dividend $                        135        To Dividend Payable $                           135 (To Record the dividend Payable) Short Term Investment $                     7,516 4       To Cash $                       7,516 (To Record the purchase of investment) 5 No entry is for the Transaction (Note: investment sold by the investor not by the company) Cash $                     4,313 6         To Short Term Investment $                 4,313.00 (To Record the sale of short term investment)