Part (A) Recording Business Transactions.

(40 marks in total)

Question 1: Moon company starts her new business as a corporation named New Light Learning, Inc. During the first month of operations the business completed the following transactions:

JUN	01	New Light Learning received $50,000 cash from Sheena Bright and issued common stock to her.
	02	New Light Paid $30,000 cash for land
	04	New Light purchased $1500 of office supplies on account agreeing to pay within 30 days.
	07	New Light collected cash of $9,000 for service revenue that she earned by providing travel services for clients.
	12	New Light performed service for clients and lets then pay later. She earned $5,000 of service revenue on account.
	14	New Light paid the following cash expenses Office rent, $1,500; Employee salary, $2,000.
	20	New Light paid $600 on the account payable created in transaction 3.
	21	New Light collected $4,000 cash from the client in transaction 5.
	23	The business paid cash dividends of $7,000 to Moon company, the stockholder.
Aug	1	New Light pays three month office rent $4,000 in advance
	1	New Light paid employee salaries of $2,500
	1	New Light learning purchased a building $80,000 in exchange of note payable
	2	New Light Learning received contribution of furniture $22,000 from Moon company and issued common stock to her.
	14	New Light received a telephone bill for $200 and will pay this expense next month.
	14	New Light paid employee salaries of $1,700
	20	A law firm engages New Light to provide e-learning services and agrees to pay $800 in advance.
	27	New Light collected cash of $10,000 for service revenue that she earned by providing travel services for clients.

Required:

Record the preceding transactions in the journal of Cookie Lapp Travel Design, Inc.

[15 marks].

Post to the ledger. [15 marks].

Prepare the trial balance of New Light LEARNING, INC. at Dec 31, 2019.

[10 marks].