Journal Entries (Appendix)

Castle Consulting Agency began business in February 2010. The transactions entered into by Castle during its fi rst month of operations are as follows:

a. Acquired articles of incorporation from the state and issued 10,000 shares of capital stock in exchange for $150,000 in cash.

b. Paid monthly rent of $400.

c. Signed a fi ve-year promissory note for $100,000 at the bank.

d. Purchased software to be used on future jobs. The software costs $950 and is expected to be used on fi ve to eight jobs over the next two years.

e. Billed customers $12,500 for work performed during the month.

f. Paid offi ce personnel $3,000 for the month of February.

g. Received a utility bill of $100. The total amount is due in 30 days.

Required Prepare in journal form the entry to record each transaction.

AppendixLO1