2. Post August Transactions from the general journal to the general ledger.
3.Prepare a trial balance on a ten column work-sheet.
Trial Balance Check Figure
Total debits = $729,905
(chart of accounts & Transactions below)
TRANSACTIONS FOR THE MONTH OF AUGUST 2018: Date Transaction Aug. 01 Issued 60,000 shares of $10 par value common stock in exchange for an initial investment of $600,000 by the firm's owners, Begona Perez-Mira and Brenda Hanson. Aug. 01 Aug. 03 Prepaid $1,680 for a one-year insurance policy Issued 2,000 shares of $10 par value common stock for office equipment with a fair market value of $20,000 Aug. 04 | Borrowed $40,000 by issuing a five-year, 6% note payable. The note called for a ss,000 annual installment payment plus interest. Record the short-term and long-term portions of the note payable in two separate accounts. Aug. 05 Purchased Land and a Building for $114,000 cash. The Building had a fair market value of $84,000 and the Land had a fair market value of $30,000. Aug. 06 Purchased $12,000 worth of Office Supplies on account from Kilcoyne Office Supply. Aug. 07Established a petty cash fund of $300 Aug. 08 Paid S1,800 cash for an order with a local newspaper for advertising that begins on August 15 and will run for three months. The advertising was paid for on this date to obtaina ower price. Aug. Completed services for several clients and received $15,500 Aug. 12Completed services for customers and billed them for $12,400 Aug. 15 Paid the semi-monthly payroll of $8,000 to the firm's part time consultants, all of which are classified as independent contractors. 15. (Three months) Services Enterprises would not be paid for 90 days. Bayou Computer Services accepted a Aug. 16Received $4,800 in advance for services to be provided from August 16 through February Aug. 16 A client billed on August 12 indicated that a $4,320 receivable due Bayou Computer 10% 90-day note on this date. Aug. 17 Declared a cash dividend of $0.10 per share on this date Payable on December 16. Aug. 18 Paid $3,000 cash to Kilcoyne Office Supply on the August 06 account balance. Aug. 29 Received and paid the August telephone bill of $325 Aug. 31 Collected $5,000 of the receivable recorded on August 12. Aug. 31 Paid $725 cash for various utility bills received for August Aug. 31 Recorded services rendered to clients during the last half of August that totaled $22,000. The firm collected $14,000 in cash with the balance due in 30 days. Record the entry to replenish the petty cash fund. An audit of the petty cash fund determined the following: Aug. 31 Petty Cash Tiekets: Postage Freight-Out Repair Expense Miscellaneous Expense 105 $ 60 75 40 Curreney and Colns in Petty Cash $25 TRANSACTIONS FOR THE MONTH OF AUGUST 2018: Date Transaction Aug. 01 Issued 60,000 shares of $10 par value common stock in exchange for an initial investment of $600,000 by the firm's owners, Begona Perez-Mira and Brenda Hanson. Aug. 01 Aug. 03 Prepaid $1,680 for a one-year insurance policy Issued 2,000 shares of $10 par value common stock for office equipment with a fair market value of $20,000 Aug. 04 | Borrowed $40,000 by issuing a five-year, 6% note payable. The note called for a ss,000 annual installment payment plus interest. Record the short-term and long-term portions of the note payable in two separate accounts. Aug. 05 Purchased Land and a Building for $114,000 cash. The Building had a fair market value of $84,000 and the Land had a fair market value of $30,000. Aug. 06 Purchased $12,000 worth of Office Supplies on account from Kilcoyne Office Supply. Aug. 07Established a petty cash fund of $300 Aug. 08 Paid S1,800 cash for an order with a local newspaper for advertising that begins on August 15 and will run for three months. The advertising was paid for on this date to obtaina ower price. Aug. Completed services for several clients and received $15,500 Aug. 12Completed services for customers and billed them for $12,400 Aug. 15 Paid the semi-monthly payroll of $8,000 to the firm's part time consultants, all of which are classified as independent contractors. 15. (Three months) Services Enterprises would not be paid for 90 days. Bayou Computer Services accepted a Aug. 16Received $4,800 in advance for services to be provided from August 16 through February Aug. 16 A client billed on August 12 indicated that a $4,320 receivable due Bayou Computer 10% 90-day note on this date. Aug. 17 Declared a cash dividend of $0.10 per share on this date Payable on December 16. Aug. 18 Paid $3,000 cash to Kilcoyne Office Supply on the August 06 account balance. Aug. 29 Received and paid the August telephone bill of $325 Aug. 31 Collected $5,000 of the receivable recorded on August 12. Aug. 31 Paid $725 cash for various utility bills received for August Aug. 31 Recorded services rendered to clients during the last half of August that totaled $22,000. The firm collected $14,000 in cash with the balance due in 30 days. Record the entry to replenish the petty cash fund. An audit of the petty cash fund determined the following: Aug. 31 Petty Cash Tiekets: Postage Freight-Out Repair Expense Miscellaneous Expense 105 $ 60 75 40 Curreney and Colns in Petty Cash $25
