Question

Wildhorse Corporation had the following transactions.

1.		Sold land (cost $12,800) for $15,800.
2.		Issued common stock at par for $20,000.
3.		Recorded depreciation on buildings for $17,800.
4.		Paid salaries of $9,800.
5.		Issued 900 shares of $1 par value common stock for equipment worth $7,200.
6.		Sold equipment (cost $12,200, accumulated depreciation $8,540) for $1,464.

(a)

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

Transaction	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.
6.

Answer 1

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

Transaction	Account Titles and Explanation	Debit	Credit
1.	Cash	15800
	Land		12800
	Gain on sale of land		3000
2.	Cash	20000
	Common Stock		20000
3.	Depreciation expense	17800
	Accumulated depreciation-Building		17800
4.	Salaries expense	9800
	Cash		9800
5.	Cash	7200
	Common Stock		900
	Paid in capital in excess of par value-Common Stock		6300
6.	Accumulated depreciation-equipment	8540
	Cash	1464
	Loss on sale of equipment	2196
	Equipment		12200