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Journal Entries

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Transactions for the Pate Company for the month of October are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations.

1. Stockholders invested additional $40,000 cash in the business.
2. Purchased land costing $28,000 for cash.
3. Purchased equipment costing $10,000 for $4,000 cash and the remainder on credit.
4. Purchased supplies on account for $800.
5. Paid $1,000 for a one-year insurance policy.
6. Received $4,000 for services previously performed on account.
7. Paid wages to employees for $2,500.

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Solution Summary

The solution explains the journal entries for the given transactions

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The journal entries will be
1. Stockholders invested additional $40,000 cash in the business.

When the stockholders invest more money, it goes towards equity and the cash is increased
Cash Dr...............40,000
Common Stock Cr.......40,000

2. Purchased land costing $28,000 for cash.

Land Dr..............28,000
Cash Cr..................28,000

3. ...

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