Question

in QUICKBOOK online how would i record these two

(A) Brent Watson invested $75,000 cash in stock of [Your Name]'s Landscaping. You invested $100,000 cash in the stock of the company. Investments all in cash were deposited in the business checking account.

(B) Purchased 32,000 of store fixtures using a Notes Payable, due in 1 year with 10% interest. The fixtures have an estimated salvage value of $4,000 and a 10-year life. The equipment is depreciated using the SL method.

Answer 1

(A)

Account title and explanation	Debit	Credit
Cash [$75,000+$100,000]	$175,000
Common stock		$175,000
[To record investment]

(B)

Account title and explanation	Debit	Credit
Store fixtures	$32,000
Notes payable		$32,000
[To record purchase of store fixtures in exchange of notes]

At Year end Adjusting entry for Depreciation:

Account title and explanation	Debit	Credit
Depreciation Expense [$32,000-$4,000]/10 years	$2,800
Accumulated depreciation-Store fixtures		$2,800
[To record depreciation expense]