Kelsey Baker founded GolfDeals.com at the beginning of February. GolfDeals.com sells new and used golf equipment online. The following events occurred in February

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Kelsey Baker founded GolfDeals.com at the beginning of February.  GolfDeals.com sells new and used golf equipment online. The following events occurred in February

 

 

  1. Borrowed $36,000 cash from a bank, signing a note due in three years.
  2. Received investment of cash by organizers and distributed to them 500 shares of $0.10 par value common stock with a market price of $35 per share.
  3. Purchased a warehouse for $127,000, paying $29,000 in cash and signing a note payable for the balance on a 10-year mortgage.
  4. Purchased computer and office equipment for $26,000, paying $7,000 in cash and owing the rest on accounts payable to the manufacturers.
  5. Loaned $1,500 to an employee who signed a note due in three months.
  6. Paid $5,000 to the manufacturers in (d) above.
  7. Purchased short-term investments for $16,000 cash.

 

Required:

Prepare journal entries for the above transactions.

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Transaction General Journal Debit Credit
1 Cash 36000
Notes payable 36000
2 Cash 17500
Common stock 50
Additional paid-in capital 17450
3 Buildings 127000
Cash 29000
Notes payable 98000
4 Equipment 26000
Cash 7000
Accounts payable 19000
5 Notes receivable 1500
Cash 1500
6 Accounts payable 5000
Cash 5000
7 Short-term investments 16000
Cash 16000

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