Question One (3 marks):

Lana Company was formed on January 1, 2023. During the first month of operations, the following events and transactions occurred:

Jan 1 Shareholders invested $20,000 cash in exchange for ordinary shares.

2 Hired a secretary-receptionist at a salary of $2,000 per month.

3 Purchased $1,500 of supplies on account from David Supply Company.

7 Paid office rent of $900 cash for the month.

11 purchased office equipment for $18,000, paying $4,000 in cash, and signed

a 30-day, $14,000, note payable.

12 Received $3,500 advance on a management consulting engagement.

17 Received cash of $1,200 for services performed for Lucille Co.

31 Paid secretary-receptionist $2,000 salary for the month.

Instructions:

(a) Journalize the transactions. (You may omit explanations of the transaction).

(b) Post the entries to the Cash account to show the ending balance.