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J.K. Builders was incorporated on July 1. a. Received $83,000 cash invested by owners and issued common stock. b. Bought an unused field from a local farmer by paying $73,000 cash. As a construction site for smaller projects, it is estimated to be worth $78,000 to J.K. Builders. c. A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $23,000, but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $20,700 bill from the supplier. d. Borrowed $38,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years. One of the owners sold $23,000 worth of his common stock to another shareholder for $24,000. e. Prepare journal entries for the above transactions from the first month of business. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.) View transaction list Journal entry worksheet 2 3 Received $83,000 cash invested by owners and issued common stock. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
Expert Answer
| J.K Builders | |||
| JOURNAL | |||
| Date | Account Head & Description | Debit Amount | Credit Amount |
| a | Cash Debit | 83000 | |
| Common stock Credit | 83000 | ||
| (received cash and Issued common stock) | |||
| b | Land Debit | 78000 | |
| Cash Credit | 73000 | ||
| Profit and Loss account Credit | 5000 | ||
| (purchased land worth 78000 by paying cash of 73000) | |||
| c | Supplies Debit | 23000 | |
| Accounts payable Credit | 20700 | ||
| Discount received Credit | 2300 | ||
| (purchased supplies and received 10% discount) | |||
| d | Cash Debit | 38000 | |
| Loan payable/Notes payable Credit | 38000 | ||
| (Borrowed 38000 from the bank) | |||
| e | No journal entry required | ||
