Question & Answer: ABC Company started operations at the beginning of February 20XX. The Company sells new and used golf equi…..

Problem 1. (22 points) ABC Company started operations at the beginning of February 20xXx. The Company sells new and used golf equipment online. The following events occurred in February Borrowed $50,000 cash from a bank signing a note due in three years teceived investment of cash by organizers and distributed to them 1,000 shares of 0.20 par for $125,000 paying $25,000 in cash and signing a note payable for the $22,000, paying $5,000 in cash and owning the value common stock with a market price of $20 per share. c. Purchased a warehouse balance on a 10-year mortgage. Purchased computer and office equipment for rest on accounts payable to the manufacturers d. e. Loaned $2,000 to an employee who signed a note due in three months f. Paid $3,000 to the manufacturer in (d) above. 8. Purchased short term investments for $15,000 cash. Required: Requirement 1. For each of the above events prepare a journal entry and show your work below: No. Account names Debit Credit a. Cas h +501 00 o Nate payable t b. C. d. e. . Short lem thvest mens

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ABC Company started operations at the beginning of February 20XX. The Company sells new and used golf equipment online. The following events occurred in February: a. Borrowed $50, 000 cash from a bank signing a note due in three years. b. Received investment of cash by organizers and distributed to them 1, 000 shares of 0.20 par value common stock with a market price of $20 per share. c. Purchased a warehouse for $125, 000 paying $25, 000 in cash and signing a note payable for the balance on a 10-year mortgage. d. Purchased computer and office equipment for $22, 000, paying $5, 000 in cash and owning the rest on accounts payable to the manufacturers e. Loaned $2, 000 to an employee who signed a note due in three months. f. Paid $3, 000 to the manufacturer in (d) above. g. Purchased short term investments for $15, 000 cash. Required: Requirement 1. For each of the above events prepare a journal entry and show your work below:

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