Question
Business transactions completed by Hannah Venedict during the month of September are as follows. Venedict invested $84,000 cash along with office equipment valued at $21,000
Business transactions completed by Hannah Venedict during the month of September are as follows. Venedict invested $84,000 cash along with office equipment valued at $21,000 in exchange for common stock of a new company named HV Consulting. The company purchased land valued at $35,000 and a building valued at $165,000. The purchase is paid with $25,000 cash and a long-term note payable for $175,000. The company purchased $1,500 of office supplies on credit. Venedict invested her personal automobile in the company in exchange for more common stock. The automobile has a value of $16,700 and is to be used exclusively in the business. The company purchased $5,400 of additional office equipment on credit. The company paid $1,900 cash salary to an assistant. The company provided services to a client and collected $7,600 cash. The company paid $640 cash for this months utilities. The company paid $1,500 cash to settle the account payable. created in transaction c. The company purchased $20,000 of new office equipment by paying $20,000 cash. The company completed $6,750 of services for a client, who must pay within 30 days. The company paid $2,000 cash salary to an assistant. The company received $4,000 cash in partial payment on the receivable created in transaction k. The company paid $2,600 cash in dividends. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of the end of September.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started