Recerved $500,000 cash and issued common stock. Opened a new checking account at Atlanta National Bank and deposited the cash received from the stockholders. b. a. Paid $200,000 cash and issued a $400,000, 10-year, 5% notes payable for land with an existing building. The assets had the following market values: Land, $100,0003; Building, $500,000. Paid $75,000 for store fixtures. d. C. Paid $45,000 for office equipment. Paid $600 for office supplies. Paid $3,600 for a two-year insurance policy. e. f. g. Purchased appliances from Long Appliance Manufacturers (merchandise inventory) on account for $425,000. h. Established a petty cash fund for $150. i. Sold appliances on account to Bill Contractors for $215,000, terms n/30 (cost, $86,000). j. Sold appliances to Down Contracting for $150,000 (cost, $65,000), receiving a 6- month, 8% note. k. Recorded credit card sales of $80,000 (cost, $35,000), net of processor fee of 2%. All fees are recorded at the time of the sale. I. Received payment in full from Bill Contractors. Purchased appliances from Long Appliance Manufacturers on account for $650,000. Made payment on account to Long Appliance Manufacturers, $300,000. Sold appliances for cash to Home Builders for $350,000 (cost, $175,000). Received payment in full on the maturity date from Down Contracting for the note. m. m. 0. р. Sold appliances to Lowell Contracting for $265,000 (cost, $130,000), receiving a 9-month, 8% note. Made payment on account to Long Appliance Manufacturers, $500,000. Sold appliances on account to various businesses for $985,0p00, terms n/30 (cost, $395,000). q. г. S.
Recerved $500,000 cash and issued common stock. Opened a new checking account at Atlanta National Bank and deposited the cash received from the stockholders. b. a. Paid $200,000 cash and issued a $400,000, 10-year, 5% notes payable for land with an existing building. The assets had the following market values: Land, $100,0003; Building, $500,000. Paid $75,000 for store fixtures. d. C. Paid $45,000 for office equipment. Paid $600 for office supplies. Paid $3,600 for a two-year insurance policy. e. f. g. Purchased appliances from Long Appliance Manufacturers (merchandise inventory) on account for $425,000. h. Established a petty cash fund for $150. i. Sold appliances on account to Bill Contractors for $215,000, terms n/30 (cost, $86,000). j. Sold appliances to Down Contracting for $150,000 (cost, $65,000), receiving a 6- month, 8% note. k. Recorded credit card sales of $80,000 (cost, $35,000), net of processor fee of 2%. All fees are recorded at the time of the sale. I. Received payment in full from Bill Contractors. Purchased appliances from Long Appliance Manufacturers on account for $650,000. Made payment on account to Long Appliance Manufacturers, $300,000. Sold appliances for cash to Home Builders for $350,000 (cost, $175,000). Received payment in full on the maturity date from Down Contracting for the note. m. m. 0. р. Sold appliances to Lowell Contracting for $265,000 (cost, $130,000), receiving a 9-month, 8% note. Made payment on account to Long Appliance Manufacturers, $500,000. Sold appliances on account to various businesses for $985,0p00, terms n/30 (cost, $395,000). q. г. S.
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 16EA: Discuss how each of the following transactions for Watson, International, will affect assets,...
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Record each transaction in a journal entry . Explanations are not required.
Transcribed Image Text:Received $500,000 cash and issued common stock. Opened a new checking
account at Atlanta National Bank and deposited the cash received from the
stockholders.
b.
a.
Paid $200,000 cash and issued a $400,000, 10-year, 5% notes payable for land
with an existing building. The assets had the following market values: Land, $100,000;
Building, $500,000.
Paid $75,000 for store fixtures.
d.
C.
Paid $45,000 for office equipment.
Paid $600 for office supplies.
Paid $3,600 for a two-year insurance policy.
e.
f.
g.
Purchased appliances from Long Appliance Manufacturers (merchandise
inventory) on account for $425,000.
h.
Established a petty cash fund for $150.
i.
Sold appliances on account to Bill Contractors for $215,000, terms n/30 (cost,
$86,000).
j.
Sold appliances to Down Contracting for $150,000 (cost, $65,000), receiving a 6-
month, 8% note.
k.
Recorded credit card sales of $80,000 (cost, $35,000), net of processor fee of
2%. All fees are recorded at the time of the sale.
I.
Received payment in full from Bill Contractors.
Purchased appliances from Long Appliance Manufacturers on account for
$650,000.
Made payment on account to Long Appliance Manufacturers, $300,000.
Sold appliances for cash to Home Builders for $350,000 (cost, $175,000).
m.
m.
O.
р.
Received payment in full on the maturity date from Down Contracting for the note.
q.
Sold appliances to Lowell Contracting for $265,000 (cost, $130,000), receiving a
9-month, 8% note.
Made payment on account to Long Appliance Manufacturers, $500,000.
Sold appliances on account to various businesses for $985 000, terms n/30 (cost,
$395,000).
r.
S.
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