Journal entries

Journal entries

Question: Prepare  Journal entries, T-Accounts and Trial balance

April 1: Article of  incorporation are filed with the state and 100000 shares of common stock  are issued for 100000 in cash. April 4: A six month promissory note is issued at the bank .Interest at an annual rate of 9% per annum will be repaid in six months along with the principal amount of loan of 50000. April 8: Land and a storage shed are acquired for a lump sum of 80000.On the basis of an appraisal ,25% of the value is assigned to the land and remainder to the building. April 10: Mowing equipment is purchased from a supplier at a total cost of 25000.A own payment of 10000 is made with a remainder due by the end of the month. April 18: Customers are billed for services provided during the first half of the month. The total amount billed of 5500 is due within ten days. April 27: The remaining balance due on the mowing equipment is paid to the supplier. April 28: The total amount of 5500 due from customers is received. April 30: Customers are billed for services provided during the month .The total amount billed is 9850. April 30: Salaries and wages of 4650 for the month of April are paid        

 Answer:                                              Garderner  Corporation                                                       Journal Entries  

Date Particulars Debit Credit
       
April 1 Capital Capital Stock (To record issuance of capital stock exchange for cash) 100000 100000
April 4 Cash 9 % Notes Payable (To record loan taken from bank) 50000 50000
April 8 Land Storage Shed Cash (To record purchase of land and storage shed for cash) 20000 60000     80000
April 10 Mowing Equipment Cash Accounts Payable (To record purchase of mowing equipment on cash and credit) 25000   10000 15000
April 18 Accounts Receivable Service Revenue (To record service provided on credit) 5500   5500
April 27 Accounts Payable Cash (To record payment of due amount on cash) 15000   15000
April 28 Cash Accounts receivable (To record cash collection from receivable) 5500   5500
April 30 Account Receivable Service Revenue (To record service provided on credit) 9850   9850
April 30 Wages and Salary Cash (To record payment of salary and wages on cash) 4650   4650
  Total 29550 29550

                                       Gardener Corporation                                     Trial Balance

S.no. Particulars Debit Credit
       
1 Cash 45850  
2 Capital stock   100000
3 Notes payable   50000
4 Land 20000  
5 Storage shed 60000  
6 Equipment 25000  
7 Accounts payable 9850  
8 Service revenue   15350
9 Wages and salary 4650  
  Total 165350 165350

 

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