P2-71B. (Learning Objectives 2, 3: Analyzing and recording transactions) During December, Swanson Auction Co. completed the following transactions:

Swanson’s business uses the following accounts: Cash, Accounts Receivable, Supplies, Land, Accounts Payable, Notes Payable, Share Capital, Dividends, Service Revenue, Salary Expense, Rent Expense, Advertising Expense, and Utilities Expense.
Requirements 1. Journalize each transaction of Swanson Auction Co. Explanations are not required.
2. Post to these T-accounts: Cash, Accounts Payable, and Notes Payable.
3. After these transactions, how much cash does the business have? How much does it owe in total liabilities?

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Dec 1 5 9 10 19 22 31 31 31 Swanson received 27,000 cash and issued ordinary shares to the shareholders. Paid monthly rent, 3,000. Paid 12,100 cash and signed a 32,000 note payable to purchase land for an office site. Purchased supplies on account, 1,600. Paid 500 on account. Borrowed 19,000 from the bank for business use. Swanson signed a note payable to the bank in the name of the business. Service revenue earned during the month included 15,200 cash and 5,000 on account. Paid employees' salaries (2,200), advertising expense (E900), and utilities expense (1,300). Declared and paid a cash dividend of 3,000.