Question

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

Answer 1

Answer:

March 1 Issue common stock for $21,000.

• Dr Cash 21,000
•     Cr Common stock 21,000

March 5 Obtain $9,000 loan from the bank by signing a note.

• Dr Cash 9,000
•     Cr Notes payable 9,000

March 10 Purchase construction equipment for $25,000 cash.

• Dr Equipment 25,000
•     Cr Cash 25,000

March 15 Purchase advertising for the current month for $1,100 cash.

• Dr Advertising expense 1,100
•     Cr Cash 1,100

March 22 Provide construction services for $18,000 on account.

• Dr Accounts receivable 18,000
•     Cr Service revenue 18,000

March 27 Receive $13,000 cash on account from March 22 services.

• Dr Cash 13,000
•     Cr Accounts receivable 13,000

March 28 Pay salaries for the current month of $6,000.

• Dr Salaries expense 6,000
•     Cr Cash 6,000