Answer:
1. On formation of new Company and receipt of cash of $ 12,000 from shareholders
Cash Dr   $ 12,000
To Share capital Cr $ 12,000
2. On purchase of truck for $ 18,000
 Truck A/c Dr $ 18,000
To Cash   Cr   $ 18,000
(Though list price of truck is $ 21,000, but in accounts only the purchase price will be recorded as its cost borne by the company.)
3. On payment of dividend in cash
Dividend A/c   Dr $ 10,000
 To Cash Cr   $ 10,000
4. On purchase of land
Land A/c Dr $ 50,000
To cash   Cr   $ 50,000
( On purchase of land on payment of $ 50,000).
There is another method of accounting of land value based on valuation by appraiser. If Company wants to record based on valuation by Appraiser, the accounting will be recorded as under:
Land A/c Dr   $ 55,000
To Cash   Cr   $ 50,000
To gain on purchase of land   Cr $ 5,000
5 On declaration of dividend
Dividend A/c Dr   $ 1,100
 To Dividend Payable A/c Cr $ 1,100
On payment of dividend after 60 days
Dividend payable A/c   Dr   $ 1,100
To Cash   Cr $ 1,100
6. After each month wages will be due to its workers, then accounting entry will be recorded as under
Wages A/c   Dr   $ 5,600
To Wages payable A/c   Cr $ 5,600
After two weeks, on payment of wages, the accounting entry will be recorded as under
Wages payable A/c   Dr $ 5,600
 To cash Cr   $ 5,600
Explanation:
