Question

Exercise 13-3

Cushenberry Corporation had the following transactions.

1.		Sold land (cost $8,240) for $10,300.
2.		Issued common stock at par for $21,200.
3.		Recorded depreciation on buildings for $12,400.
4.		Paid salaries of $7,200.
5.		Issued 1,200 shares of $1 par value common stock for equipment worth $8,100.
6.		Sold equipment (cost $10,800, accumulated depreciation $7,560) for $1,296.

(a)

For each transaction above, prepare the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

list of accounts:

Accounts Payable
Accounts Receivable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Cash
Common Stock
Cost of Goods Sold
Depreciation Expense
Equipment
Gain on Disposal of Plant Assets
Land
Loss on Disposal of Plant Assets
Paid-in Capital in Excess of Par-Common Stock
Salaries and Wages Expense
Salaries and Wages Payable
Service Revenue

Answer 1

Ans.	No.	General Journal	Debit	Credit
	1	Cash	10300
		Land		8240
		Gain on sale of land (10300-8240)		2060
	2	Cash	21200
		Common stock		21200
	3	Depreciation expenses	12400
		Accumulated Depreciation on Building		12400
	4	Salaries expenses	7200
		Cash		7200
	5	Equipment (1200*6.75)	8100
		Common stock (1200*1)		1200
		Additional Paid-in Capital [1200*(6.75-1)]		6900
		(Common stock issue price = 8100/1200 = 6.75)
	6	Cash	1296
		Loss on sale of Equipment (10800-1296-7560)	1944
		Accumulated Depreciation on Equipment	7560
		Equipment		10800