Accounting
Journal entries of HSB
Sr.
Particulars
Debit
Credit
1.
Cash
Common stock
Paid in capital in excess of par
5,000,000
1,000,000
4,000,000
2.
Cash
Bonds Payable
2,500,000
2,500,000
Jan 1
Interest Expense
Cash
125,000
125,000
July 1
Interest Expense
Cash
125,000
125,000
3.
Building
Cash
3,500,000
3,500,000
4.
1.jan.17
30.june.17
Rent expense
Rent due
Rent Payable
120,000
50,000
70,000
5.
Inventory
Account Payable
850,000
850,000
Additional inventory
Firm Supplier
300,000
300,000
T-Accounts
Cash
5,000,000 125,000
2,500,000 125,000
3,500,000
Bal. 3,750,000
Common stock
1,000,000
Paid in capital
4,000,000
Bonds Payable
2,500,000
Interest expense
250,000
Building
3,500,000
Rent Expense
120,000
Rent Payable
120,000
Inventory
850,000
300,000
Accounts payable
850,000
Balance sheet for HSB as on Dec 31, 2016
$
Assets
Current assets
Cash3,750,000
Inventory1,150,000
Total Current assets4,900,000
Fixed Asset
Building3,500,000
Total Fixed assets3,500,00
Total Assets8,400,000
Liabilities
Current liabilities
Bond payable2,500,000
Rent due50,000
Account payable850,000
Long term Liabilities
Total Liabilities3,400,000
Equity
Common stock1,000,000
Additional paid in capital4,000,000
Total Liabilities and Equity8,400,000