Transaction 1 On March 1, 2007, two former classmates invested a total of $30,000 in cash in exchange for 1,000 shares of stock each. Account: Cash Dollar amount: 30000 Account: Paid-in Capital Dollar amount: 30000 Transaction 2 The corporation quickly acquired $44,000 in inventory, 70% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days. Account: Cash Dollar amount: -30800 Account: Inventory Dollar amount: 44000 Account: Accounts Payable Dollar amount: 13200 Transaction 3 A store was rented for $6,000 for the year. A lease was signed for one year on March 1. The first 3 months rent were paid in advance. [ Note: Record the March 1 transaction first and the March 31 adjustment second.] Account: Cash Dollar amount: -1500 Account: Prepaid Rent Dollar amount: 1500 Account: Prepaid Rent Dollar amount: -500 Account: Retained Earnings Dollar amount: -500
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This note was uploaded on 09/16/2009 for the course ACCT 230 taught by Professor Jacobs during the Spring '08 term at Michigan State University.