Unformatted text preview: They pay a hotel $975 cash to rent a small ballroom, and a caterer provides food on account at a cost of $1,350. f. GCL Corp. issues stock with no par value for $1,700,000 to new stockholders in a seasoned equity offering. g. Max’s Mini-Mart sells goods priced at $10.00 for cash, and also collects 6% Michigan sales tax. (Ignore any cost of goods sold aspect of the transaction.) 2. Describe the transaction that likely resulted in the preparation of each of the following journal entries. a. Cash 3,000 Accounts receivable 3,000 b. Prepaid rent 11,200 Cash 11,200 c. Land 80,000 Common stock 80,000 d. Accounts payable 720 Inventory 720...
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- Spring '10
- Accounting, Prepare journal entries, Murphy & Murphy, LLC, Prepaid rent Cash, Hart Co. purchases, GCL Corp. issues