Description of Financial Accounting Transactions:

Journal Entries^^

01. June 1: Laura, an investor, made an investment in ACC by purchasing 40,000 shares of its common stock paying in cash. Market Value is 14$ and the Par Value is 1.6$. June 1: Mac, an investor, made an investment in ACC by purchasing 15,000 shares of its common 02. stock paying $20,500.00 in cash, and contributing to ACC office equipment with a fair market value of $95,000. June 2: Check \# 1001 for $25,000 was issued as a down payment for new computer equipment that cost $150,000 on invoice 827364 from Dell. A five-year note was executed by ACC for the balance. June 4: Office supplies costing $3,500 was purchased on credit from Perez's Discount Supplies Corporation, invoice number AB9865. June 8: Check \# 1002 was issued to purchase a one-year insurance policy covering its computer 05. equipment. The cost of the insurance is $12,000 and paid to Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. June 10: Check \# 1003 was issued for $10,000 as a partial payment on the balance owed to Dell related to the purchase of computer equipment, invoice 827364. June 16: A check in the amount of $21,500 was received for services performed for Pitman Pictures. June 17: ACC purchased a building and the land it is on for $155,000.00 to house its repair facilities 08. and to store computer equipment. The lot on which the building is located is valued at $30,000.00. The balance of the cost is to be allocated to the building. Check \# 1004 was used to make the down payment of $20000.00. A thirty year mortgage with an inital payment due on August 1st, was established for the balance. \begin{tabular}{|r|r|l|r|r|} \hline 2 & 1-Jun & Cash & 20,500 & \\ \hline & & Office Equipment & 95,000 & \\ \hline & & Common Stock & & 115,500 \\ \hline & & additional paid in capital & & \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|r|r|l|r|r|} \hline 3 & 2-Jun & Office Equipment & 150,000 & \\ \hline & & Cash & & 25,000 \\ \hline & & Notes Payable & & 125,000 \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|r|r|l|r|r|} \hline 4 & 4-Jun & Office Supplies & 3,500 & \\ \hline & & Accounts Payable & & 3,500 \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|r|r|l|r|r|} \hline 5 & 8-Jun & Prepaid Expense & 12,000 & \\ \hline & & Cash & & 12,000 \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \end{tabular}