Chapter 3 Practice Questions
1.Enter the following transactions in the two-column journal provided for Charlie’s Cabinetry. You
may omit explanations.
Mar. 2 Purchased auto cleaning supplies from Robert Suppliers for $750 on account.
4 Collected an account receivable of $525 from a customer, Elegant Kitchens.
5 Paid $275 in partial payment of an account payable to Lucy Co for equipment purchased in
February.
7 Issued capital stock in exchange for $5,600 cash.
9 Purchased office equipment from Diamond’s Warehouse for $3,700; paid $1,700 cash and
issued a note payable due in 90 days for the balance.
2.Capital Financial Advisors, Inc. had the following transactions during January, its first month of
operations:
a Issued to Marvin Tycoon 9,000 shares of capital stock in exchange for his investment of $45,000
cash.
b Borrowed $30,000 from a bank and signed a note payable due in three months.
c Purchased office furniture costing $19,750; paid $6,000 cash and charged the balance on account.
d Paid $6,000 of the amount owed for office furniture.
e Issued an additional 2,000 shares of capital stock to an individual who invests $10,000 in the
business.
Instructions
Record the above transactions directly in the T accounts below. Identify each entry in a T account with
the letter shown for the transaction.
Cash Office Furnishings Notes Payable
Accounts Payable Capital Stock
