Page 95 tred 1. For each of the events (a) through (g). prepare journal entries if a transaction of the business exists, checking that debits equal credits. If a transaction does not exist, explain why there is no transaction for the business. 2. Create T-accounts and post each of the transactions to determine balances at March 31. Because this is a new business, beginning balances are $0. 3. Prepare a trial balance on March 31 to check that debits equal credits after the transactions are posted to the T- accounts. Penny Cassidy has decided to start her business. Penny's Pool Service & Supply, Inc. (PPSS). There is much to do when starting a new business. Here are some transactions that have occurred in PPSS in March. a. Received $25,000 cash and a large delivery van with a value of $36,000 from Penny, who was given 4.000 shares of $0.05 par value common stock in exchange. b. Purchased land with a small office and warehouse by paying $10,000 cash and signing a 10-year note payable to the local bank for $80,000. The land has a value of $18,000 and the building's value is $72.000. Use separate accounts for land and buildings. Purchased new computer equipment from Dell for $2.500 cash, and purchased other office equipment for $4,000. signing a note payable due in six months to the office equipment manufacturer. d Hired a receptionist for the office at a salary of $1.500 per month: the receptionist will begin working for PPSS starting in April. e Paid $1,000 on the note payable to the bank [in (b) above] at the end of March (ignore interest). f Purchased short-term investments in the stock of other companies for $5.000 cash. g Ordered $10,000 in inventory from Pool Corporation, Inc.. a pool supply wholesaler, to be received in April.