Part 1

Boomer Zoomer is the owner of Muskogee Repair, a business engaged in providing miscellaneous home repair services. Boomer began the business two years ago with cash he stashed while playing professional football. The transactions listed below occurred during the month just ended.

Required: Prepare the journal entries to record the following transactions.

1. Purchased a small building located on a large lot for a total price of $92,000, of

which $50,000 was applicable to the land and $42,000 to the building. A cash down payment of $20,000 was made and a note payable was issued for the balance of the purchase price.

2. Purchased $1,950 supplies from Waurika Supply Co. on open account.

3. Returned for credit $250 of the supplies received from Waurika Supply Co. because they were received in unsatisfactory condition.

4. Paid Waurika Supply Co. the amount owed from transactions 2 and 3 above.

5. Purchased a one-year insurance policy for $600 cash.

6. Performed repairs for a nice elderly couple and collected in full the charge of $5,100. The charge was a bit steep, but the couple had been big Boomer Zoomer fans and didn't know any better. Besides, Boomer included his autograph in the deal.

7. A bill for $120 was received from the Muskogee Herald-Tribune for

advertisements which appeared in the Sunday comics section. The bill is payable by the tenth of next month.

8. Paid the monthly wages earned by employees, $1,800.

9. Paid $350 to Ryan Automotive for repairs to the company's truck.

10. Supplies costing $540 were consumed during the month.

11. One-month's insurance coverage (purchased in item 5 above) expired during the month.

Part 2

Prepare an adjusted trial balance.