Nathanson Corporation was organized on May 1. The following events occurred during the first month.
- Received $71,000 cash from the five investors who organized Nathanson Corporation. Each investor received 107 shares of $10 par value common stock.
- Ordered store fixtures costing $11,000.
- Borrowed $15,000 cash and signed a note due in two years.
- Purchased $22,000 of equipment, paying $1,300 in cash and signing a six-month note for the balance.
- Lent $1,100 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.
| Transaction | General Journal | Debit | Credit |
| 1 | Cash | 71000 | |
| Common stock | 5350 | ||
| Additional paid-in capital | 65650 | ||
| 2 | No journal entry required | ||
| 3 | Cash | 15000 | |
| Notes payable (long-term) | 15000 | ||
| 4 | Equipment | 22000 | |
| Cash | 1300 | ||
| Notes payable (short-term) | 20700 | ||
| 5 | Notes receivable (short-term) | 1100 | |
| Cash | 1100 | ||
| 6 | Store fixtures | 11000 | |
| Cash | 11000 |
