The c ompany engaged in the following trans ac tions

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Unformatted text preview: ons. Learning Objective: 03­03 Understand how balance sheet accounts are increased or decreased. Learning Objective: 03­08 Understand how revenue and expense transactions are recorded in an accounting system. The Mc Millan Corporation inc orporated on September 2, 2011. The c ompany engaged in the following trans ac tions during its firs t month of operations : Sept. 2 Is s ued c apital s toc k in ex c hange for $900,000 c as h. Sept. 4 Purc has ed land and a building for $350,000. The v alue of the land was $50,000, and the v alue of the building was $300,000. The c ompany paid $200,000 c as h and is s ued a note pay able for the balanc e. Sept. 12 Purc has ed offic e s upplies for $600 on ac c ount. The s upplies will las t for s ev eral months . Sept. 19 Billed c lients $75,000 on ac c ount. Sept. 29 Rec orded and paid s alary ex pens e of $24,000. Sept. 30 Rec eiv ed $30,000 from c lients billed on September 19. A partial lis t of the ac c ount titles us ed by the c ompany inc ludes : Cas h Ac c ounts Rec eiv able Offic e Supplies Land Building Notes Pay able Ac c ounts Pay able Capital Stoc k Client Rev enue Salary Ex pens e a. Prepare journal entries for the abov e trans ac tions . (Om it the "$" sign in your response.) Date Sep. 2 Cas h Capital s toc k e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w General J ournal Debit 900,000 Credit 900,000 10/14 11/18/13 Assignme nt Pr int Vie w 4 Land Building Cas h Notes pay able 12 Offic e s upplies Ac c ounts pay able 19 Ac c ounts rec eiv able Client rev enue 29 Salary ex pens e Cas h 30 Cas h Ac c ounts rec eiv able 50,000 300,000 600 75,000 24,000 30,000 200,000 150,000 600 75,000 24,000 30,000 b. Pos t eac h entry to the appropriate ledger ac c ounts . (Record the transactions in the given order. Om it the "$" sign in your response.) Cas h Sep. 2 Sep. 30 900,000 Sep. 4 30,000 Sep. 29 Sep. 30 bal. 706,000 200,000 24,000 Ac c ounts Rec eiv able Sep. 19 75,000 Sep. 30 Sep. 30 bal. 45...
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