Question:

The following events occurred for Johnson Company:

Received investment of cash by organizers and distributed to them 1,000 shares of $1 par value common stock with a market price of $40 per share

Purchased $15,000 of equipment, paying $3,000 in cash and owing the rest on accounts payable to the manufacturer

Borrowed $10,000 cash from a bank

Loaned $800 to an employee who signed a note.

Purchased $13,000 of land paid $4,000 in cash and signed a mortgage note for the balance

Required:

Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, write 'No entry required.')

Received investment of cash by organizers and distributed to them 1,000 shares of $1 par value common stock with a market price of $40 per share

Dr. Cr.

Cash $40,000

Common stock @ 1 $1,000

Add-In capital Common Stock $39,000

Purchased $15,000 of equipment, paying $3,000 in cash and owing the rest on accounts payable to the manufacturer

Dr. Cr.

Equipment $15,000

Cash $3,000

Account Payable $12,000

Borrowed $10,000 cash from a bank

Dr. Cr.

Cash $10,000

Bank Loan $10,000

Loaned $800 to an employee who signed a note.

Dr. Cr.

Note Receivable $800

Cash $800

Purchased $13,000 of land paid $4,000 in cash and signed a mortgage note for the balance

Dr. Cr.

Land $13,000

Cash $4,000

Mortgage Note Payable $9,000