Journalize and Post Basic Transactions

question 125

Essay

Journalize and post basic transactions
Precision Grading Co.was organized to grade construction sites.
* On June 1,owner Dave Precision deposited $90,000 in a new bank account opened in the name of the business in exchange for stock.
* On June 3,the company acquired grading equipment costing $89,000,paying $43,000 cash and signing a note payable for the balance.
* On June 10,the company paid $13,000 of the amount owed for equipment acquired on June 3.
Instructions: Journalize these three transactions and post to the ledger accounts.

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Definitions:

Short-Term Creditors

Short-term creditors are lenders or suppliers to whom a company owes money that is due to be paid back within a short period, typically within one year.

Liquidity

A measure of how easily assets can be converted into cash without significant loss of value.

Supplier

A party that provides goods or services to another entity, typically in a B2B (business-to-business) relationship.