Financial Accounting Journal entries Prepare the proper journal entry for each: 1) On January 1,2012, MC Hammer contributed $2,000 in cash to establish Can\'t Touch This, inc. (CTTI). He is the sole owner of the firm. 2) on January 15,2012, CTTI acquired acoustin equipment costing $15,000 from Run DMC. CTTI paid $3,000 cash and signed a note payable for the rest. 3) On march 1, 2012, CTTI held a concert. Ticket sales to bored, suburban children totaled $20,000 in cash. 4) On march 15, 2012, CTTI paid MC Hammer wages of 6,000 in cash. 5) On march 20th, the company purchased $10,000 of inventory on account. Solution 1 jan)Cash Debit $2 ,000 owner\'s equity /capital credit $ 2,000 15 jan) Equipment   Debit    $ 15,000 Cash Credit             $ 3,000 Note payable credit    $ 12,000 1 march) cash Debit                    $ 20,000 Concert/ sales revenue credit   $ 20,000 15 march) Wages   Debit   $ 6,000 Cash credit        $ 6,000 20march)   Inventory Debit     $ 10 ,000 Accounts payable credit $ 10,000 .

1. Financial Accounting Journal entries
Prepare the proper journal entry for each:
1) On January 1,2012, MC Hammer contributed $2,000 in cash to establish Can't Touch This,
inc. (CTTI). He is the sole owner of the firm.
2) on January 15,2012, CTTI acquired acoustin equipment costing $15,000 from Run DMC.
CTTI paid $3,000 cash and signed a note payable for the rest.
3) On march 1, 2012, CTTI held a concert. Ticket sales to bored, suburban children totaled
$20,000 in cash.
4) On march 15, 2012, CTTI paid MC Hammer wages of 6,000 in cash.
5) On march 20th, the company purchased $10,000 of inventory on account.
Solution
1 jan)Cash Debit $2 ,000
owner's equity /capital credit $ 2,000
15 jan) Equipment Debit $ 15,000
Cash Credit $ 3,000
Note payable credit $ 12,000
1 march) cash Debit $ 20,000
Concert/ sales revenue credit $ 20,000
15 march) Wages Debit $ 6,000
Cash credit $ 6,000

2. 20march) Inventory Debit $ 10 ,000
Accounts payable credit $ 10,000