1. | Don Humes invested $39,300 cash in the company, as its sole owner. |
2. | Hired two employees to work in the warehouse. They will each be paid a salary of $2,940 per month. |
3. | Signed a 2-year rental agreement on a warehouse; paid $23,000 cash in advance for the first year. |
4. | Purchased furniture and equipment costing $29,280. A cash payment of $10,100 was made immediately; the remainder will be paid in 6 months. |
5. | Paid $1,600 cash for a one-year insurance policy on the furniture and equipment. |
6. | Purchased basic office supplies for $500 cash. |
7. | Purchased more office supplies for $1,220 on account. |
8. | Total revenues earned were $19,180$7,380 cash and $11,800 on account. |
9. | Paid $410 to suppliers for accounts payable due. |
10. | Received $3,380 from customers in payment of accounts receivable. |
11. | Received utility bills in the amount of $380, to be paid next month. |
12. | Paid the monthly salaries of the two employees, totalling $5,880. |