Question

Business transactions completed by Hannah Venedict during the month of September are as follows.
Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.
  

Sep.		1		Venedict invested $60,000 cash along with office equipment valued at $25,000 in exchange for common stock of a new company named HV Consulting.
Sep.		3		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.
Sep.		5		The company purchased $2,000 of office supplies on credit.
Sep.		7		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.
Sep.		9		The company purchased $5,600 of additional office equipment on credit.
Sep.		11		The company paid $1,800 cash salary to an assistant.
Sep.		13		The company provided services to a client and collected $8,000 cash.
Sep.		15		The company paid $635 cash for this month’s utilities.
Sep.		17		The company paid $2,000 cash to settle the account payable created on September 5.
Sep.		19		The company purchased $20,300 of new office equipment by paying $20,300 cash.
Sep.		21		The company completed $6,250 of services for a client, who must pay within 30 days.
Sep.		23		The company paid $1,800 cash salary to an assistant.
Sep.		25		The company received $4,000 cash in partial payment on the receivable created on September 21.
Sep.		27		The company paid $2,800 cash in dividends.

Answer 1

Answer- Journal Entries

Date	Accounts Title	Dr	Cr
1-Sep	Cash	$60,000
	Office Equipment	$25,000
	Common stock		$85,000
3-Sep	Land	40000
	Building	160000
	Cash		30000
	Notes Payable		170000
5-Sep	Office supplies	2000
	Accounts Payable		2000
7-Sep	Automobile	16500
	Common stock		16500
9-Sep	Office equipment	5600
	Accounts Payable		5600
11-Sep	Salaries expenses	1800
	Cash		1800
13-Sep	Cash	8000
	Service Revenue		8000
15-Sep	Utilities expenses	635
	Cash		635
17-Sep	Accounts Payable	2000
	Cash		2000
19-Sep	Office equipment	20300
	Cash		20300
21-Sep	Accounts receivable	6250
	Service Revenue		6250
23-Sep	Salaries expenses	1800
	Cash		1800
25-Sep	Cash	4000
	Accounts receivable		4000
27-Sep	Retained Eranings	2800
	Cash		2800
	Trial Balance
		Dr	Cr
	Cash	$12,665
	Accounts Receivable	$2,250
	Office supplies	2000
	Land	40000
	Building	160000
	Office Equipment	$50,900
	Automobile	16500
	Accounts Payable		$5,600
	Notes payable		170000
	Common stock		$101,500
	Dividends	2800
	Retained earnings
	Service Revenue		$14,250
	Salaries expenses	$3,600
	Utilities expenses	$635
	Total	$291,350	$291,350
	Income statement
	Service revenue		$14,250
	Less: Operating expenses
	Salaries expenses	$3,600
	Utilities expenses	$635
	Total operating expenses		$4,235
	Net Income		$10,015
	Statement of Retained Earnings
	Retained Earning balance Sep 1 2015	0
	Net Income	$10,015
		10015
	Less; dividend	2800
	Retained Earning balance Sep 30 2015	7215
	The balance is transferred to	Stockholder equity
	Balance sheet
	Assets
	Current Assets
	Cash	$12,665
	Accounts Receivable	$2,250
	Office supplies	2000
	Total current assets	$16,915
	Property Palnt & equipment
	Land	40000
	Building	160000
	Office Equipment	$50,900
	Automobile	16500
	Net Property Plant & equipment	267,400
	Total assets	$284,315
	Liabilities and Stockholder equity
	current liabilities
	Accounts payable	$5,600
	Total current liabilities	$5,600
	Notes payable	170,000
	Total liabilities	$175,600
	Stockholder equity
	Common stock	$101,500
	Retained earnings	7,215
	Total stockholder equity	$108,715
	Total liabilities and stockholder equity	$284,315
The impact on equity instruction are not visible B, but I could show
what is the impact on equity
	Impact on equity	Amount
1-Sep	Increase	$85,000
3-Sep	No effect	0
5-Sep	No effect	0
7-Sep	Increase	16500
9-Sep	No effect	0
11-Sep	Decrease	-1800
13-Sep	Increase	8000
15-Sep	Decrease	-635
17-Sep	No effect	0
19-Sep	No effect	0
21-Sep	Increase	6250
23-Sep	Decrease	-1800
25-Sep	No effect	0
27-Sep	Decrease	-2800
Total impact on equity		108715