Express the Following Transactions of Forman's Store, Inc

question 66

Essay

Express the following transactions of Forman's Store, Inc., in journal entry form.If an entry is not required, indicate the reason.You may omit explanations for the journal entries.
The store:
(1) Receives $35,000 from John Forman in return for 1,000 shares of the firm's $35 par
value common stock.
(2) Gives a 60-day, 8% note to a bank and receives $8,000 cash from the bank.
(3) Rents a building and pays the annual rental of $11,000 in advance.
(4) Acquires display equipment costing $7,000 and issues a check in full payment.
(5) Acquires merchandise inventory costing $22,000.The firm issues a check for $12,000,
with the remainder payable in 30 days.
(6) Signs a contract with a nearby restaurant under which the restaurant agrees to purchase
$1,500 of groceries each week.The firm receives a check for the first two weeks'
orders in advance.
(7) Obtains a fire insurance policy providing $50,000 coverage beginning next month.It
pays the one-year premium of $1,440.
(8) Pays $625 for advertisements that will appear in newspapers next month.
(9) Places an order with suppliers for $43,500 of merchandise to be delivered next month.

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Definitions:

Competitive Position

The standing or ranking of a company, product, or service in the marketplace compared to its competitors, based on factors like market share, strengths, and weaknesses.

Job Security

The confidence or probability that a person will maintain their employment without facing unemployment risks.

Securities Law

The area of law dealing with the regulation of securities (stocks, bonds, etc.), protecting investors, ensuring fair trading, and preventing fraud.

Mutual Acceptance

The initial stage in team development when members begin to accept and understand each other.