Question

Crushenberry Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par for $20,000. 3. Recorded depreciation on buildings for $17,000. 4. Paid salaries of $9,000. 5. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000. 6. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200. Instructions. For each transaction above, (a) prepare the journal entry

Answer 1

Date	General Journal	Debit	Credit
	Cash	$ 15,000
	Land		$ 12,000
	Gain on sale of land		$    3,000
	(To record sale of land for 15,000)
	Cash	$ 20,000
	Common stock		$ 20,000
	(To record issue of shares at par)
	Depreciation expense	$ 17,000
	Accumulated depreciation - Building		$ 17,000
	(To record depreciation expense)
	Salaries expense	$    9,000
	Cash		$    9,000
	(To record salaries paid)
	Equipment	$    8,000
	Common stock		$    1,000
	paid in capital in excess of par		$    7,000
	(To record issue of 1000 $1 par value shares for equipment)
	Cash	$    1,200
	Accumulated depreciation - Equipment	$    7,000
	Loss on sale of equipment	$    1,800
	Equipment		$ 10,000
	(To record sale of equipment)

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