Scribd Logo
Upload

Welcome to Scribd!

  • Book 1

    Uploaded by

    mohitgaba19
    16 views2 pages
    Honeytone Corporation had the following transactions: it purchased a new building for $95,000 by paying $15,000 cash and issuing an $80,000 note, purchased $12,000 of inventory on account, sold $11,000 of inventory for $14,000 on account, paid $12,000 for the inventory purchased on account, issued $40,000 of capital stock, collected $9,500 of accounts receivable, paid $510 of utility bills, sold an old building for $62,000 receiving $188,000 cash and a $44,000 note, and paid $3,000 cash dividends to stockholders.

    Original Description:

    journal entries

    Original Title

    Book1

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Honeytone Corporation had the following transactions: it purchased a new building for $95,000 by paying $15,000 cash and issuing an $80,000 note, purchased $12,000 of inventory on account, sold $11,000 of inventory for $14,000 on account, paid $12,000 for the inventory purchased on account, issued $40,000 of capital stock, collected $9,500 of accounts receivable, paid $510 of utility bills, sold an old building for $62,000 receiving $188,000 cash and a $44,000 note, and paid $3,000 cash dividends to stockholders.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    16 views2 pages

    Book 1

    Uploaded by

    mohitgaba19
    Honeytone Corporation had the following transactions: it purchased a new building for $95,000 by paying $15,000 cash and issuing an $80,000 note, purchased $12,000 of inventory on account, sold $11,000 of inventory for $14,000 on account, paid $12,000 for the inventory purchased on account, issued $40,000 of capital stock, collected $9,500 of accounts receivable, paid $510 of utility bills, sold an old building for $62,000 receiving $188,000 cash and a $44,000 note, and paid $3,000 cash dividends to stockholders.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Question 1 Answer to Question 1

    Honeytone Corporation had the following transactions: S.No


    1 Purchased a new building, paying $15,000 cash and issuing a note for $80,000 1
    2 Purchased $12,000 of inventory on account
    3 Sold inventory costing $11,000 for $14,000 on account
    4 Paid for inventory purchased on account in (2) above
    5 Issued capital stock for $40,000 2
    6 Collected $9,500 of accounts receivable
    7 Paid utility bills totalling $510
    8 Sold old building for $62,000, receiving $188,000 cash and a $44,000 note (no gain 3
    9 Paid $3,000 cash dividends to stockholders
    Required: Record the above transactions in general journal format.
    4

    9
    Answer to Question 1
    Description Debit Credit
    Building $ 95,000
    Cash $ 15,000
    Note Payable $ 80,000

    Inventory $ 12,000
    Accounts Payable $ 12,000

    Accounts Receivable $ 14,000


    Sales $ 14,000

    Accounts Payable $ 12,000


    Cash $ 12,000

    Cash $ 40,000
    Capital Stock $ 40,000

    Cash $ 9,500
    Accounts Receivable $ 9,500

    Utilities expenses $ 510


    Cash $ 510

    Cash $ 18,000
    Note Receivable $ 44,000
    Building $ 62,000

    Dividends $ 3,000
    Cash $ 3,000

    You might also like