June 1: Jeremy made an investment in Real Solutions., by purchasing 2,660 shares
ID: 2445789 • Letter: J
Question
June 1: Jeremy made an investment in Real Solutions., by purchasing 2,660 shares of its common stock paying $50,400 in cash and by contributing computer equipment with a fair market value of $69,300. The par value of the common stock was $25 per share.
June 2: Check # 5002 was used to make a down payment of $31,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $155,000.00. A five-year note was executed by Real Solutions for the balance.
June 4: Additional office equipment costing $300.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432.
June 8: Unsatisfactory office equipment costing $60.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Real Solutions.
I would like to know how these journal entries would be completed
June 1: Jeremy made an investment in Real Solutions., by purchasing 2,660 shares of its common stock paying $50,400 in cash and by contributing computer equipment with a fair market value of $69,300. The par value of the common stock was $25 per share.
June 2: Check # 5002 was used to make a down payment of $31,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $155,000.00. A five-year note was executed by Real Solutions for the balance.
June 4: Additional office equipment costing $300.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432.
June 8: Unsatisfactory office equipment costing $60.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Real Solutions.
I would like to know how these journal entries would be completed
Explanation / Answer
Date DR CR Jun-01 Cash 50400 computer equipment 69300 Common stock(2660*25) 66500 Additional paid-in capital(2660*20) 53200 Jun-02 computer equipment 1,55,000.00 Cash 31000 Notes Payable 1,24,000.00 Jun-04 office equipment 300 Accounts payable 300 Jun-08 Accounts payable 60 office equipment 60