Scott, Kim and Koko organized the SKK Corporation on January 1, 20A. Each of these owners invested $30,000 cash and received shares. Below are selected transactions that were completed during January.
(A) Give the entry on SKK's books for each transaction:
(1) Sold shares to the owners.
(2) Borrowed $100,000 on one-year note payable.
(3) Purchased land by signing a $20,000 note payable.
(4) Paid $5,000 of trade payables.
(5) Purchased two service vehicles, $21,000 each; paid cash.
(6) Accepted a promissory note of $1,000 from a customer.
(B) Complete the following based only on the 6 transactions above:
Assets $ Liabilities $
Shareholders' equity $
Correct Answer:
Verified
Q13: A debit increases an account and a
Q19: The current ratio takes into account the
Q82: Why is the historical cost principle so
Q83: The accounts with identification letters for WildWorld,
Q84: Assets are economic resources controlled by an
Q85: Some legal contracts, such as the signing
Q91: On the income statement, assets should always
Q91: Why is the continuity assumption so important
Q98: The payment of a liability in cash
Q99: Contributed capital results when a company buys
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents