a) On May 02, Alex Merchandise organized Life Care Insurance agency by opening a bank account in the company name with a

deposit of $1,80,000 cash.

b) On May 16, the new business purchased an office building total price of $228,000, of which $172,000 was applicable to the

land and the remaining to the building. A down payment in cash was made Rs $74,500 and a note payable was issues for the

balance of the purchase price.

c) On May 25, office equipment was purchased from Taylor & Co on credit basis at a price of $7,800. The same is to be paid on

June 22.

d) On May 28, a small portion of equipment that was purchased is found defective and returned to Taylor & Co. The cost of

defective material was $1,350.

e) On June 22, the remaining liability to Taylor & Co was paid in full.