Question

Practice exercise 1 Cushenberry Corporation (1.) sold land (cost $8,080) for $10,100 (2.) issued common stock at a par for $20,900. (3.) recorded depreciation on the buildings for $15,000. (4.) paid salaries of $6,700. (5.) issued 1,300 shares of $1 par value common stock for equipment worth $8,500. (6.) sold equipment(cost $14,500, accumulated depreciation $10,150) for $1,740.For each transaction prepare a journal entry with account titles and credit or debit?

Answer 1

Solution:

Journal entries for Cushenberry Corporation

Date	Particulars	Debit($)	Credit($)
1.	Cash A/c Dr	$10,100
	To Gain on sale of land A/c		$8,080
	To Land A/c		$2,020
2.	Cash A/c Dr	$20,900
	To Common stock A/c		$20,900
3.	Expense for depreciation A/c Dr	$15,000
	To Depreciation Accumulated A/c		$15,000
4.	Expense for salaries A/c Dr	$6,700
	To Cash A/c		$6,700
5.	Equipment A/c Dr	$8,500
	To Common stock A/c		$1,300
	To Paid in capital excess of par A/c		$7,200
6.	Depreciation Accumulated A/c Dr	$10,150
	Cash A/c Dr	$1,740
	Loss on disposal of equipment A/c Dr	$2,610
	To Equipment A/c		$14,500