Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions duringFebruary while the company was being organized are listed as follows.Feb. 1 Grimes and several others invested $600,000 cash in the business in exchange for 30,000 shares of capital stock.Feb. 10 The company purchased office facilities for $277,500, of which $92,500 was applicable to the land and $185,000 to the building. A cash paymentof $55,500 was made and a note payable was issued for the balance of the purchase price.Feb. 16 Computer equipment was purchased from PCWorld for $15,300 cash.Feb. 18Office furnishings were purchased from Hi-Way Furnishings at a cost of $9,450. A $945 cash payment was made at the time of purchase, and anagreement was made to pay the remaining balance in two equal installments due March 1 and April 1. Hi-Way Furnishings did not require thatHeartland sign a promissory note.Feb. 22Office supplies were purchased from Office World for $445 cash.Feb. 23 Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $340, but Heartlandwas charged $385. PCWorld promised to refund the difference within seven days.Feb. 27 Mailed Hi-Way Furnishings the first installment due on the account payable for office furnishings purchased on February 18.Feb. 28 Received $45 from PCWorld in full settlement of the account receivable created on February 23.Required:a. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts.CashAccounts ReceivableOffice SuppliesOffice FurnishingsComputer SystemsLandOffice BuildingNotes PayableAccounts PayableCapital Stockb. Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. The Feb. 1transaction is provided for you.

Date Dr./Cr Paticulars Debit ($) Credit ($) Feb-01 Dr. Cash 600000 Cr Capital stock…

a. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts. Cash Accounts Receivable Office Supplies Office Furnishings Computer Systems Land Office Building Notes Payable Accounts Payable Capital Stock b. Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. The Feb. 1 transaction is provided for you.

a. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts. Cash Accounts Receivable Office Supplies Office Furnishings Computer Systems Land Office Building Notes Payable Accounts Payable Capital Stock b. Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. The Feb. 1 transaction is provided for you.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 25BEB

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