199.On January 8, stockholders transfer ownership of several pieces of office equipment to the new business,JumpStart, for common stock. When new, these items were worth $72,500. The fair market value of the equipmentis $60,000. Journalize this transfer.
200.On August 30, JumpStart incurred the following expenses:
Payment to the landlord for August rent, $2,300
Payment to the Gas & Electric Company for August’s bill, $525Payment of employee wages for the last half of August, $1,750Payment of shopping center’s parking lot cleaning fee, $275
Journalize these payments as one compound journal entry.
201.On October 30, JumpStart pays $3,330 in dividends to its stockholders. Journalize this event.
202.Several transactions are listed below, with the accounting equation stated to the right side of each. Use thefollowing identification codes to indicate the effects of each transaction on the accounting equation. Write youranswers in the space provided under the accounting equation. You need an identification code for
eachelement ofthe accounting equation. An example is given before the first transaction.
I-IncreaseD-DecreaseNE-No Effect
Assets=Liabilities+Stockholders’
Equity
ExampleA stockholder invests in his new business by giving equipment valued at $3,500.INE I
(a)Cash sales are made.__________? _____
(b)
Equipment is purchased on credit._______________
(c)
Payment is made for the equipment purchased on credit in (b)._____? __________
(d)The company sold excess supplies to another company on credit._______________
(e)Cash is collected from customers for accounts receivable balances._____ _____ _____