Part II: Journal Entries (60 Points)
Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income
Statement Including Earnings per Share
Record journal entries for the following transactions in the space provided below, as if today were
December 1, 2006.
In cases where no entry is required, please write "No entry required for this
transaction" for your answer to grade correctly.
Unless otherwise stated, assume the transaction takes
place today (December 1, 2006).
a. Borrowed $10,000 cash on a five year, 12 percent note payable, dated December 1, 2006
b. Purchased land for a future building site on credit, $24,000.
c. Recorded sales revenue for 2006 totaling $122,000, including $14,000 cash and the balance on
d. Sold 1,300 additional shares of capital stock for $1 cash per share.
e. Recognized $25,000 in remaining expenses for 2006, including $12,000 on credit. (Use “Remaining
f. Collected accounts receivable, $17,000.
g. Purchased additional assets, $13,500 cash (Use the “Remaining Assets” account).
h. Paid accounts payable, $9,800.
Purchased supplies on account for future use, $3,000.
Jack Little sells 100 shares to his Admin TA, Katie, for $24 per share.
He purchased the shares for
$30 per share.