O'Brien Construction had the following business activities:
1.Stockholders invest $50,000 cash in the corporation.
2.CBI purchased $800 of office supplies on credit.
3.CBI purchased office equipment for $14,000,paying $5,000 in cash and signing a 30-day note payable for the remainder.
4.CBI paid $400 cash on account for office supplies purchased in transaction 2.
5.CBI purchased two acres of land for $20,000,signing a 2-year note payable.
6.CBI sold one acre of land at one-half of the total cost of the two acres,receiving the full amount or $10,000 in cash.
7.CBI made a payment of $10,000 on its 2-year note.
Required:
Prepare the journal entries that would be used to record the transactions.(Reference each journal entry to the transaction number,shown above).

Question

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The Answer of O'Brien Construction had the following business activities:
1.Stockholders invest $50,000 cash in the corporation.
2.CBI purchased $800 of office supplies on credit.
3.CBI purchased office equipment for $14,000,paying $5,000 in cash and signing a 30-day note payable for the remainder.
4.CBI paid $400 cash on account for office supplies purchased in transaction 2.
5.CBI purchased two acres of land for $20,000,signing a 2-year note payable.
6.CBI sold one acre of land at one-half of the total cost of the two acres,receiving the full amount or $10,000 in cash.
7.CBI made a payment of $10,000 on its 2-year note.
Required:
Prepare the journal entries that would be used to record the transactions.(Reference each journal entry to the transaction number,shown above).

O'Brien Construction Had the Following Business Activities