Question

Received cash from investors in exchange for 15,000 shares of stock (par value of $1.00 per share) with a market value of $10 per share. Purchased land in Wisconsin for $17,000, signing a one-year note (ignore interest). Bought two used delivery trucks for operating purposes at the start of the year at a cost of $10,000 each; paid $6,000 cash and signed a note due in three years for the rest (ignore interest). Paid $1,800 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) Sold one-fourth of the land for $4,250 to Pablo Development Corporation, which signed a six-month note. Stockholder Helen Bailey paid $27,700 cash for a vacant lot (land) in Canada for her personal use.

Prepare a trial balance at December 31, 2018.

Answer 1

Kindly check explanation

Step-by-step explanation:

Number of stock shares = 15000

Value per share = $10

Worth of shares = 15000 * $10 = $150000

Cash paid for truck purchase = $6000

Cash paid for truck repair = $1800

Land purchase = $17000

Land sale = $4250

Note receivable = $4250

Note payable = $17000

_________ TRIAL BALANCE _______

Cash ___________142,200

Land ___________ 12750

Truck ___________11800

Note receivable ___4250

Notes payable _______________17000

Long term notes payable _______4000

Common stock ______________ 15000

Paid-in capital in excess ________135000

TOTAL_______171,000 ________ 171,000

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