Prepare journal entries for the following events from the first month of business. If the event is not a transaction, write "no transaction.'

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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J.K. Builders was incorporated on July 1. Prepare journal entries for the following events from the
first month of business. If the event is not a transaction, write "no transaction.'
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 sup-
plies 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.

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