Business transactions completed by Eric Pense during the month of September are as follows...

Business transactions completed by Eric Pense during the month of September are as follows.

a. Pense invested $23,000 cash along with office equipment valued at $12,000 in exchange for common stock of a new company named EP Consulting.

b. The company purchased land valued at $8,000 and a building valued at $33,000. The purchase is paid with $15,000 cash and a long-term note payable for $26,000.

c. The company purchased $600 of office supplies on credit.

d. Pense invested his personal automobile in the company in exchange for more common stock. The automobile has a value of $7,000 and is to be used exclusively in the business.

e. The company purchased $1,100 of additional office equipment on credit.

f. The company paid $800 cash salary to an assistant.

g. The company provided services to a client and collected $2,700 cash.

h. The company paid $430 cash for this month’s utilities.

i. The company paid $600 cash to settle the account payable created in transaction c.

j. The company purchased $4,000 of new office equipment by paying $4,000 cash.

k. The company completed $2,400 of services for a client, who must pay within 30 days.

l. The company paid $800 cash salary to an assistant.

m. The company received $1,000 cash in partial payment on the receivable created in transaction k.

n. The company paid $1,050 cash for dividends.

Required

1. Prepare general journal entries to record these transactions (use account titles listed in part 2).

2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); 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). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting.

3. Prepare a trial balance as of the end of September.