Answer to Question #256141 in Accounting for Nel

Question #256141

Prepare journal entries for the following transactions: 1.Sheena invested 100,000.00 cash to start her salon. 2.Christian borrowed 200,000.00 cash from Mark to be invested in his barbershop. 3.Luka inherited a parcel of land with fair market value of 1,000,000 from his father, he constructed a building in the said land with a construction cost of 500,000 to be used for his garments business. 4.Stephen resigned from his work as a mechanic and decided to open his own car repair shop. He brought in his rented shop his own tools with a fair value of 10,000 and 20,000 as initial operating cash.

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Solution:

The journal entries are as follows: