The ABC Corporation was formed on January 1, 2017. The three initial owners each invested $400,000 cash and each received 40,000 shares of $1 par value common stock. Below are selected transactions that were completed during January 2017. 1. Issue shares of common stock to the owners. 2. Borrowed $320,000 on a one-year note payable. 3. Purchased land by signing a $280,000 note payable. 4. Paid $40,000 of accounts payable. 5. Purchased two service vehicles for cash at a cost of $96,000 each. 6. Purchased $8,000 of supplies on credit. Question: Prepare the journal entries on ABC's books for each transaction.

The ABC Corporation was formed on January 1, 2017. The three initial owners each invested $400,000 cash and each received 40,000 shares of $1 par value common stock. Below are selected transactions that were completed during January 2017. 1. Issue shares of common stock to the owners. 2. Borrowed $320,000 on a one-year note payable. 3. Purchased land by signing a $280,000 note payable. 4. Paid $40,000 of accounts payable. 5. Purchased two service vehicles for cash at a cost of $96,000 each. 6. Purchased $8,000 of supplies on credit. Question: Prepare the journal entries on ABC's books for each transaction.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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