Question

Wilma’s Vegetable Market had the following transactions during 2017:

1. Issued $25,000 of par value common stock for cash.

2. Recorded and paid wages expense of $10,000.

3. Acquired land by issuing common stock of par value $50,000.

4. Declared and paid a cash dividend of $1,000.

5. Sold a long-term investment (cost $3,000) for cash of $3,000.

6. Recorded cash sales of $20,000.

7. Bought inventory for cash of $2,000.

8. Acquired an investment in IBM stock for cash of $6,000.

9. Converted bonds payable to common stock in the amount of $10,000.

10. Repaid a 6 year note payable in the amount of $11,000.

Answer 1

Journal Entries are as follows.

Step-by-step explanation:

1. Cash $25,000 (Debit)

Common Stock $ 25,000 (credit)

2. Wages $10,000 (debit)

Cash $10,000 (credit)

3. Land $ 50,000 (debit)

Common Stock $50,000 (credit)

4. Dividend Declared $ 1000 (debit)

Dividend Payable $ 1000 ( credit)

And

Dividend Payable $ 1000 ( debit)

Cash $ 1000 (credit)

5. Cash $ 3000 (debit)

Long Term Investment $ 3000 (credit)

6. Cash $ 20,000 (debit)

Sales $ 20,000 ( credit)

7. Inventory $2000 (debit)

Cash $ 2000 (credit)

8. Investment $ 6000 ( debit)

Cash $ 6000 (credit)

9. Bonds Payable $ 10,000 (debit)

Discount $ 1000 (credit) ( if there's any)

Common Stock $ 9,000 ( credit ) ( in case of discount)

10. Notes Payable $ 10,000 (debit)

Interest on Notes Payable $ 1,000 (debit) ( suppose there's interest of $ 1000 on $ 10,000 Notes Payable)

Cash $ 11,000 (credit)