90.2K

Verified Solution

Link Copied!

Freetrade Corporation was organized on May $1.$ The following events occurred during the first month.Received $$69,000$ cash and a building valued at $$255,000$ from the five investors who organized Freetrade.Ordered store fixtures costing $$18,000.$Borrowed $$13,000$ cash and signed a note due in two years.Purchased $$14,000$ of equipment, paying $$1,600$ in cash and signing a six$-$month note for the balance.Lent $$1,600$ to an employee who signed a note to repay the loan in three months. No interest will be charged.Received and paid for the store fixtures ordered in $($b$).$

Freetrade Corporation was organized on May $1.$ The following events occurred during the first month.

a$.$ Received $$69,000$ cash and a building valued at $$255,000$ from the five investors who organized Freetrade.

b$.$ Ordered store fixtures costing $$18,000.$

c$.$ Borrowed $$13,000$ cash and signed a note due in two years.

d$.$ Purchased $$14,000$ of equipment, paying $$1,600$ in cash and signing a six$-$month note for the balance.

e$.$ Lent $$1,600$ to an employee who signed a note to repay the loan in three months. No interest will be charged.

f$.$ Received and paid for the store fixtures ordered in $(b).$

Required:

Prepare journal entries for each transaction.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

Record the receipt of $$69,000$ cash and a building valued at $$255,000$ from

five investors who each received $110$ shares of $$10$ par value common stock.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[$a$.,,,],[,,,],[,,,],[,,,],[,,,]]$

Answer & Explanation Solved by verified expert

See Answer