The following are the transactions of Dennen Inc. for the month of January 2015. a. (Sample)...
Question:
The following are the transactions of Dennen Inc. for the month of January 2015.
| a. | (Sample) Borrowed $30,000 from a local bank. |
| b. | Lent $10,000 to an affiliate; accepted a note due in one year. |
| c. | Sold 100 additional shares of stock with a par value of $0.10 per share to investors for $500 cash. |
| d. | Purchased $15,000 of equipment, paying $5,000 cash and signing a note for the rest due in one year. |
| e. | Declared and paid $2,000 in dividends to stockholders. |
For each of the above transactions of Dennen Inc. for the month of January 2015, indicate the accounts, amounts, and direction of the effects (+ for increase and ? for decrease) on the accounting equation. A sample is provided. ( Accounts payable, accounts receivable, Accrued liabilities payable, additional paid-in capital, buildings, cash, common stock, dividends payable, equipment, intangibles, inventories, land, long-term debt, long term investments, notes payable, notes receivable, retained earnings, short-term investments, shore fixtures, supplies)
| Assets | = | Liabilities | + | Stockholders' Equity | ||||
|---|---|---|---|---|---|---|---|---|
| a. | Cash | 30,000 | Notes payable | 30,000 | ||||
| b. | ||||||||
| c. | ||||||||
| d. | ||||||||
| e. | ||||||||
Journal Entry:
Journal entry is an entry to the Company's journal that keeps accounting transactions in chronological order. This consists of a debit and credit which should always be equal, any discrepancies should be checked and accounted accordingly.
Answer and Explanation: 1
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View this answer| Transaction | Assets | = | Liabilities | + | Stockholder's Equity | |||
|---|---|---|---|---|---|---|---|---|
| a. | Cash | 30,000 | Notes Payable | 30,000.00 | ||||
| b. | Notes... |
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Chapter 3 / Lesson 10Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.