Question

My Path Home Chapter 02 Homework -02 Homework Saved Help Save & Exit Submit Check my work Business transactions completed by Hannah Venedict during the month of September are as follows. a. Venedict invested $60,000 cash along with office equipment valued at $25,000 in a new business named HV Consulting in exchange for common stock b. The company purchased land valued at $40,000 and a building valued at $160,000. The purchase is paid with $30,000 cash and a long-term note payable for $170,000. c. The company purchased $2,000 of office supplies on credit d. Venedict invested her personal automobile in the company in exchange for more common stock. The automobile has a value of $16,500 and is to be used exclusively in the business. e. The company purchased $5,600 of additional office equipment on credit. f. The company paid $1,800 cash salary to an assistant g. The company provided services to a client and collected $8,000 cash. h. The company paid $635 cash for this month's utilities. 1. The company paid $2,000 cash to settle the account payable created in transaction c. J. The company purchased $20,300 of new office equipment by paying $20,300 cash. k. The company completed $6,250 of services for a client, who must pay within 30 days. 1. The company paid $1,800 cash salary to an assistant m. The company received $4,000 cash in partial payment on the receivable created in tynsaction k. n. The company paid a $2,800 cash dividend. onces Required: 1. Prepare general Journal entries to record these transactions using the following titles: Cash (101): Accounts Receivable (1065 Office Supplies (108): Office Equipment (163); Automobiles (164); Building (170): Land (172); Accounts Payable (201); Notes Payable (250) Common Stock (307); Dividends (319): Fees Earned (402); Salaries Expense (601); and Utilities Expense (602). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of the end of September Complete this question by entering your answers in the tabs below.- < Prev 9 of 10 ili Next >

Answer 1

1.

Prepare journal entries as follows:

Trn.	Account Titles	Debit	Credit
September
a	Cash	$60,000
	Office equipment	$25,000
	Common stock		$85,000
b	Land	$40,000
	Building	$160,000
	Cash		$30,000
	Note payable		$170,000
c	Office Supplies	$2,000
	Accounts payable		$2,000
d	Automobile	$16,500
	Common stock		$16,500
e	Office Equipment	$5,600
	Accounts payable		$5,600
f	Salaries expense	$1,800
	Cash		$1,800
g	Cash	$8,000
	Fees earned		$8,000
h	Utilities expense	$635
	Cash		$635
i	Accounts payable	$2,000
	Cash		$2,000
j	Office equipment	$20,300
	Cash		$20,300
k	Accounts receivable	$6,250
	Fees earned		$6,250
l	Salaries expense	$1,800
	Cash		$1,800
m	Cash	$4,000
	Accounts receivable		$4,000
n	Dividends	$2,800
	Cash		$2,800

___________________________________________________________

2.

Post the entries as follows:

Cash (101)
a	$60,000	b	$30,000
g	$8,000	f	$1,800
m	$4,000	h	$635
		i	$2,000
		j	$20,300
		l	$1,800
		n	$2,800
End. Bal.	$12,665
Accounts receivable (106)
k	$6,250	m	$4,000
End. Bal.	$2,250
Office Supplies (108)
c	$2,000
End. Bal.	$2,000
Office equipment (163)
a	$25,000
e	$5,600
j	$20,300
End. Bal.	$50,900
Automobile (164)
d	$16,500
End. Bal.	$16,500
Building (170)
b	$160,000
End. Bal.	$160,000
Land (172)
b	$40,000
End. Bal.	$40,000

Accounts payable (201)
i	$2,000	c	$2,000
		e	$5,600
		End. Bal.	$5,600
Note payable (250)
		b	$170,000
		End. Bal.	$170,000
Common stock (307)
		a	$85,000
		d	$16,500
		End. Bal.	$101,500
Dividends (319)
n	$2,800
End. Bal.	$2,800
Fees earned (402)
		g	$8,000
		k	$6,250
		End. Bal.	$14,250
Salaries expense (601)
f	$1,800
l	$1,800
End. Bal.	$3,600
Utilities expense (602)
h	$635
End. Bal.	$635

___________________________________________________________

3.

Prepare Trial balance as follows:

Trial Balance
	Debit	Credit
Cash	$12,665
Accounts receivable	$2,250
Office supplies	$2,000
Office equipment	$50,900
Automobile	$16,500
Building	$160,000
Land	$40,000
Accounts payable		$5,600
Notes payable		$170,000
Common stock		$101,500
Dividends	$2,800
Fees earned		$14,250
Salaries expense	$3,600
Utilities expense	$635
Total	$291,350	$291,350