Nathanson Corporation was organized on May 1 The following e

Nathanson Corporation was organized on May 1. The following events occurred during the first month.

a. $67,000 cash from the five investors who organized Nathanson Corporation. Each investor received 108 shares of $10 par value common stock.

b. Ordered store fixtures costing $18,000.

c.. Borrowed $17,000 cash and signed a note due in two years.

d. Purchased $19,000 of equipment, paying $1,300 in cash and signing a six-month note for the balance.

e. Lent $1,200 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.)

Solution

a) Cash 67000 Common stock, $10 par value (108*5*$10) 5400 Paid in capital in excess of par 61600 b) No entry is required for ordering. c) Cash 17000 Notes payable 17000 d) Equipment 19000 Cash 1300 Notes payable 17700 e) Notes receivble 1200 Cash 1200 f) Store fixtures 18000 Cash 18000