J.K. Builders was incorporated on July 1. Received $70,000 cash invested by owners and issued common stock.Bought an unused field from a local farmer by paying $60,000 cash. As a construction site for smaller projects, it is estimated to be worth $65,000 to J.K. Builders.A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $10,000, but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $9,000 bill from the supplier.Borrowed $25,000 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 $10,000 worth of his common stock to another shareholder for $11,000. 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.) X Answer is complete but not entirely correct.NoTransactionGeneral JournalDebitCredit1а.Cash70,000Common Stock70,0002b.Land60,000Cash60,0003C.Supplies9,000Supplies Expense9,0004d.Buildings25,000Notes Payable (long-term)25,000No Journal Entry Requiredе.

Name: J.K. Builders was incorporated on July 1. Received $70,000 cash invest
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Description: J.K. Builders was incorporated on July 1. Received $70,000 cash invested by owners and issued common stock.Bought an unused field from a local farmer by paying $60,000 cash. As a construction site for smaller projects, it is estimated to be worth $65

Journal Entries: Journal entries are recorded for all the transactions that occur during the…

Answered: J.K. Builders was incorporated on July…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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J.K. Builders was incorporated on July 1.

Received $70,000 cash invested by owners and issued common stock.
Bought an unused field from a local farmer by paying $60,000 cash. As a construction site for smaller projects, it is estimated to be worth $65,000 to J.K. Builders.
A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $10,000, but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $9,000 bill from the supplier.
Borrowed $25,000 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 $10,000 worth of his common stock to another shareholder for $11,000.

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.)

X Answer is complete but not entirely correct.
No
Transaction
General Journal
Debit
Credit
1
а.
Cash
70,000
Common Stock
70,000
2
b.
Land
60,000
Cash
60,000
3
C.
Supplies
9,000
Supplies Expense
9,000
4
d.
Buildings
25,000
Notes Payable (long-term)
25,000
No Journal Entry Required
е.

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