Question

March 1 Minka and Lalas each donated $55,000 cash in exchange for common stock. They also signed a note with Towne Bank for $90,000. 2 Tax Tech paid $20,400 prepaid rent for the first year. 11 Office equipment was purchased on account for $11,000. 16 The company purchased insurance for two years with $4,000 cash. The policy was effective April 1. 18 A discolored piece of office equipment arrived and the supplier agreed to remove $1,000 from Tax Tech's account. 25 The company purchased some office furniture on sale worth $14,000 on account. 28 Tax Tech paid off balance owed on the equipment. 30 An office manager was hired at a rate of $170 a day. The start date is April 1.

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Mar.1 $ 145,000.00 Cash Common Stock Note Payable (To record Cash invested into business) 55,000.00 90,000.00 Mar.2 20,400.00 Prepaid Rent Cash |(To record first year rent paid in advance) 20,400.00 Mar.11 $ 11,000.00 Office Equipment Accounts Payable (To record Equipment purchased on account) 11,000.00 Mar.16 4,000.00 Prepaid Insurance Cash (To record two years insurance policy purchased) 4,000.00

Mar.18 $ 1,000.00 Accounts Payable Office Equipment |(To record return of piece of Equipment) $ 1,000.00 Mar.25 $ 14,000.00 Office Furniture Accounts Payable (To record purchase of office furniture) 1,000.00 Mar.28 10,000.00 Accounts Payable ($11000-$1000) Cash (To record Payment of payables) 10,000.00 Mar.30 |No Journal Entry Required for Hiring an Office Manager