SI WorksheetJournalize each event listed below with the correct dollar amount.A. A new company called Cody Company is created and sells 1000 shares of stock to investors for $30 per share in cash.Cash 30,000Contributed Capital 30,000B. Cody Company borrows $12,000 from a local bank and signed a four-month promissory note for the loan.Cash 12,000Notes Payable 12,000C. Cody Company lent $1000 to a customer on a six-month note.Notes Receivable 1000Cash 1000D. One of the stockholders in Cody Company sells 100 shares of their Cody Company stock for $30 per share to a neighbor down the street.Not a transactionE. The company president purchases a $50,000 Lexus for personal use.Not a transactionF. Cody Company purchased equipment costing $12,000 by paying $4000 cash and the balance on two-year note.Equipment 12,000Cash 4000Notes Payable 8000G. Cody Company purchased plumbing supplies with an informal promise to pay $1000.Plumbing Supplies 1000Accounts Payable 1000H. A new Treasurer is hired for Cody Company at an annual salary of $125,000. The treasurer will report to work at the beginning of next month.No journal entryI. Cody Company received land valued at $20,000 from an investor in exchange for stock.Land 20,000Contributed Capital 20,000J. The customer from transaction (c) paid Cody Company the amount due (ignore interest).Cash 1000Notes Receivable 1000K. Cody Company paid the bank the full amount owed in transaction (b) (ignore interest).Notes Payable 12,000Cash 12,000L. Cody Company sold some extra supplies they had to another business in the strip mall for the same amount they paid for it $100 cash.Cash 100Plumbing Supplies 100M. Cody Company bought an automobile form a company who indicated that, based on its “blue book value,” that they wanted $6000; after negotiations, the Cody Company paid $4500 cash to obtain the automobile.Automobile 4500Cash
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