Question

Bearcat Construction begins operations in March and has the following transactions.

March 1 Issue common stock for $11,000.
March 5 Obtain $7,000 loan from the bank by signing a note.
March 10 Purchase construction equipment for $15,000 cash.
March 15 Purchase advertising for the current month for $1,200 cash.
March 22 Provide construction services for $16,000 on account.
March 27 Receive $11,000 cash on account from March 22 services.
March 28 Pay salaries for the current month of $4,000.
Required:
Record each transaction. Bearcat uses the following accounts:
Cash,
Accounts Receivable,
Notes Payable,
Common Stock,
Service Revenue,
Advertising Expense, and Salaries Expense.

Answer 1

Date Account Titles & Explanations Debit Credit

1 Mar Cash $11,000

Common stock $11,000

(Issue of common stock)

5 Mar Cash $7,000

Notes payable $7,000

(Issue of notes payable recorded)

10 Mar Equipment $15,000

Cash $15,000

(Purchase of equipment recorded)

15 Mar Advertising expenses $1,200

Cash $1,200

(Advertising expenses recorded)

22 Mar Account receivables $16,000

Service revenue $16,000

(Service revenue recorded)

27 Mar Cash $11,000

Account receivable $11,000

(Cash receipt for customers recorded)

28 Mar Salaries expenses $4,000

Cash $4,000

(Salaries expenses recorded)