Mr. Zaman Masood started his business under the name Kabul Star Hotel as proprietor on December 1, 2019. The transactions related to business during December are as follows:

Dec 1 The owner, Zaman Masood, invested $ 2,000,000 in his business.

Dec 1 A room was rented to a corporation for six months at monthly rental of $5,000. The entire six month rental of

$30,000 was collected in advance and credited to Unearned Rental Revenue.

Dec 1 A one year fire insurance policy had been purchased and the premium of $24,000 for entire life of the policy had

been paid and recorded as Unexpired Insurance.

Dec 10 Purchased building for $500,000 of which $150,000 was paid in cash and note payable was issued for balance

amount.

Dec 15 Purchased office equipment for $20,000 on credit from Alpha Corporation.

Dec 18 Borrowed $500,000 cash from the bank by signing a 90-day note payable.

Instructions:

1.Prepare Journal Entries of above transactions.

2.Post transactions to ledger & prepare Trial Balance.