If you could show the journal entries for #4 and #7 that would be great. Thanks
ID: 2328923 • Letter: I
Question
If you could show the journal entries for #4 and #7 that would be great. Thanks
Steel Gage entered into the following transactions during January 2018: I. Paid $20,000 for land to build a warehouse. 2. Purchased a delivery truck for in exchange for a $60,000, three-year note payable. 3. Issued 30,000 shares of common stock for $8 each. 4. Paid S11,000 on a short-term note payable plus $1,100 of accrued interest. 5. Purchased supplies worth $1,850 on account. 6. A stockholder sold $5,000 of her shares in Steel Gage to another investor 7. Redeemed a six-month $12,660 certificate of deposit held as an investment. Proceeds including accrued interest totaled $12,710. Purchased storage racks in exchange for $8,000 cash and a $5,000 note payable due 3/31/18. 8. 9. Built the warehouse and paid the contractor $220,000 in cash. 10. Paid dividends of $1,500.Explanation / Answer
Jounal entries S.no. Accounts title and explanations Debit $ Credit $ 4 Note payable Dr. 11000 Interest expense Dr. 1100 Cash account 12100 7 Cash account Dr. 12710 Investment in deposits 12660 Interest revenue 50