Kelsey Baker founded GolfDeals.com at the beginning of February. Â GolfDeals.com sells new and used golf equipment online. The following events occurred in February
- Borrowed $36,000 cash from a bank, signing a note due in three years.
- 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.
- Purchased a warehouse for $127,000, paying $29,000 in cash and signing a note payable for the balance on a 10-year mortgage.
- Purchased computer and office equipment for $26,000, paying $7,000 in cash and owing the rest on accounts payable to the manufacturers.
- Loaned $1,500 to an employee who signed a note due in three months.
- Paid $5,000 to the manufacturers in (d) above.
- Purchased short-term investments for $16,000 cash.
Required:
Prepare journal entries for the above transactions.
| 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 |
