3. Keiras Kitten Company had the following transactions for the month of July....their 1st month of operation:

a. Keira invests $120,000 of her own cash in the company as a GIFT

b. Keira purchases $5,600 of Office Supplies on Account Payable

c. Keira borrows $235,000 in Cash from the bank on a long-term Note Payable for 5 years.

d. Keira pays her rent in advance for 1 year of $24,000

e. Keira collects $10,000 in CASH in advance from a customer for services to be provided in the future.

f. Keira purchases a BUILDING for $160,000 paying $40,000 in cash and borrowing the remaining $120,000 on a Mortgage Payable

g. Keira earns $42,000 in Revenue on Account Receivable

h. Keira pays for $3,000 of the supplies she purchased on account payable in transaction (b.)

i. Keira collects in Cash $12,000 of the Revenue she earned in transaction (g.)

j. Keira pays salaries of $4,200

k. Keira withdraws $3,200 in cash for her personaluse.

Chart of Accounts:

ASSETS:

Cash, Accounts Receivable, Office Supplies, Prepaid Rent, Building

Liabilities:

Unearned Revenue, Note Payable, Mortgage Payable

Owners Equity:

Keiras Capital,

Keiras Drawing,

Revenue,

Salary Expense

Required:

Analyze the Transactions: Figure out which accounts, are they going up or down etc.

Record them in the Journal

Post from the Journal to the Ledgers

Prepare a Trial Balance