Question

E2-8 (Static) Recording Investing and Financing Activities LO2-4

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 $30,000 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 $30 per share.
3. Purchased a warehouse for $115,000, paying $23,000 in cash and signing a note payable for the balance on a 10-year mortgage.
4. Purchased computer and office equipment for $20,000, paying $4,000 in cash and owing the rest on accounts payable to the manufacturers.
5. Loaned $1,000 to an employee who signed a note due in three months.
6. Paid $2,000 to the manufacturers in (d) above.
7. Purchased short-term investments for $10,000 cash.

repare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Journal entry

No	General Journal	Debit	Credit
1	Cash	30000
	Notes payable		30000
2	Cash (500*30)	15000
	Common Stock (500*.10)		50
	Paid in capital in excess of par-Common Stock		14950
3	Warehouse	115000
	Cash		23000
	Notes payable		92000
4	Computer and office equipment	20000
	Cash		4000
	Account payable		16000
5	Notes receivable	1000
	Cash		1000
6	Account payable	2000
	Cash		2000
7	Short term investment	10000
	Cash		10000