Monmath Corp.started operations in March of Year 3.The following transactions occur during March.
a. On March 1, Year 3, Monty contributes $20,000 for 10,000 shares of $1 par value stock.
b. On March 1, Year 3, Monmath borrows $50,000 on a note from the bank to finance the purchase of a building.
c. Monmath buys $15,000 of inventory on account (this is the gross price before any possible discounts).
d. Monmath pays a $12,000 account payable with cash.
e. Monmath paid the annual rent of $11,760.
f. Monmath pays for one half of the inventory purchased in (c) above. There are no discounts given.
g. Issued 300 shares of $1 par value stock in settlement of $300 accounts payable.
h. Received $400 from a customer for merchandise to be delivered on April 15, Year 3.

Required:
Prepare the journal entries for transactions a through h, assuming Monmath uses the accrual basis of accounting.

Question

Monmath Corp.started operations in March of Year 3.The following transactions occur during March.
 a.	On March 1, Year 3, Monty contributes $20,000 for 10,000 shares of $1 par value stock.
b.	On March 1, Year 3, Monmath borrows $50,000 on a note from the bank to finance the purchase of a building.
c.	Monmath buys $15,000 of inventory on account (this is the gross price before any possible discounts).
d.	Monmath pays a $12,000 account payable with cash.
e.	Monmath paid the annual rent of $11,760.
f.	Monmath pays for one half of the inventory purchased in (c) above. There are no discounts given.
g.	Issued 300 shares of $1 par value stock in settlement of $300 accounts payable.
h.	Received $400 from a customer for merchandise to be delivered on April 15, Year 3.

Required:
 Prepare the journal entries for transactions a through h, assuming Monmath uses the accrual basis of accounting.

Quizplus · Accepted Answer

The Answer of Monmath Corp.started operations in March of Year 3.The following transactions occur during March.
 a.	On March 1, Year 3, Monty contributes $20,000 for 10,000 shares of $1 par value stock.
b.	On March 1, Year 3, Monmath borrows $50,000 on a note from the bank to finance the purchase of a building.
c.	Monmath buys $15,000 of inventory on account (this is the gross price before any possible discounts).
d.	Monmath pays a $12,000 account payable with cash.
e.	Monmath paid the annual rent of $11,760.
f.	Monmath pays for one half of the inventory purchased in (c) above. There are no discounts given.
g.	Issued 300 shares of $1 par value stock in settlement of $300 accounts payable.
h.	Received $400 from a customer for merchandise to be delivered on April 15, Year 3.

Required:
 Prepare the journal entries for transactions a through h, assuming Monmath uses the accrual basis of accounting.