Question

Bearcat Construction begins operations in March and has the following transactions. March 1 Issue common stock for $21,000. March 5 Obtain $9,000 loan from the bank by signing a note. March 10 Purchase construction equipment for $25,000 cash. March 15 Purchase advertising for the current month for $1,100 cash. March 22 Provide construction services for $18,000 on account. March 27 Receive $13,000 cash on account from March 22 services. March 28 Pay salaries for the current month of $6,000.Required: Record each transaction. Bearcat uses the following accounts: Cash, Accounts Receivable, Notes Payable, Common Stock, Service Revenue, Advertising Expense, and Salaries Expense.

Answer 1

Transactions will be recorded as follows;

March 1

Debit Cash $21,000

Credit Common Stock $21,000

March 5

Debit Cash $9,000

Credit Notes Payable $9,000

March 10

Debit Construction Equipment $25,000

Credit Cash $25,000

March 15

Debit Advertising Expense $1,100

Credit Cash $1,100

March 22

Debit Accounts Receivable $18,000

Credit Service Revenue $18,000

March 27

Debit Cash $13,000

Credit Accounts Receivable $13,000

March 28

Debit Salaries Expense $6,000

Credit Cash $6,000