Question
Ro Barry is a skin care specialist. During the month of June she started a new incorporated spa business with the following transactions: June 1Ro
Ro Barry is a skin care specialist. During the month of June she started a new incorporated spa business with the following transactions: June 1Ro began her business by finding investors to contribute $10,000 into a checking account in the name of the corporation in exchange for 1,000 shares of common stock of the corporation. 1 Purchased a new massage table (fixed asset) costing $24,000. Paid $4,000 cash and signed a $20,000 note payable for the balance. The note carries an interest rate of 12%(1% per month) and requires interest to be paid monthly. The first interest payment is due July 1. 2 Purchased a one year insurance policy for $1,200. The policy begins immediately. 4Purchased supplies on account for $500. 5Completed a wedding party prep and billed the customer $1,200. 8Hired an assistant at $10 per hour. 10Purchased supplies for $200 in cash. 11Received a $1,200 check from the customer billed on June 5. 14Paid the assistant $250 for 25 hours of work. 22Received a telephone bill for $60, due next month. 27Received a $1,000 deposit from a customer for a large spa package that will not be started or completed until the following month. REQUIRED a)Journalize the June transactions. b)Post the June entries to the ledger. c)Prepare a trial balance as of June 30th.
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