Listed below are the transactions for Kaiman Company:
1.The owners invest $100,000 in the company in exchange for common stock.
2.The company purchases equipment costing $30,000 with a note payable.The equipment has a ten year life and no salvage value.The company uses the straight-line method of depreciation.
3.The company purchases inventory costing $10,000 by paying cash.
4.The company paid $8,000 for four months' rent in advance.
5.The company sold inventory for $9,000 cash.The cost of the inventory was $5,000.
6.The company used one month of rent.
7.The company declared a cash dividend of $500.
8.Depreciation expense on the equipment was recorded for the month.
Required:
Prepare journal entries for the above transactions.

Question

Quizplus · Accepted Answer

The Answer of Listed below are the transactions for Kaiman Company:
1.The owners invest $100,000 in the company in exchange for common stock.
2.The company purchases equipment costing $30,000 with a note payable.The equipment has a ten year life and no salvage value.The company uses the straight-line method of depreciation.
3.The company purchases inventory costing $10,000 by paying cash.
4.The company paid $8,000 for four months' rent in advance.
5.The company sold inventory for $9,000 cash.The cost of the inventory was $5,000.
6.The company used one month of rent.
7.The company declared a cash dividend of $500.
8.Depreciation expense on the equipment was recorded for the month.
Required:
Prepare journal entries for the above transactions.

Listed Below Are the Transactions for Kaiman Company