Question

Business transactions completed by Hannah Venedict during the month of September are as follows.

1. Venedict invested $80,000 cash along with office equipment valued at $24,000 in a new business named HV Consulting in exchange for common stock.
2. The company purchased land valued at $45,000 and a building valued at $160,000. The purchase is paid with $25,000 cash and a long-term note payable for $180,000.
3. The company purchased $2,400 of office supplies on credit.
4. 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.
5. The company purchased $5,900 of additional office equipment on credit.
6. The company paid $1,600 cash salary to an assistant.
7. The company provided services to a client and collected $7,400 cash.
8. The company paid $645 cash for this month’s utilities.
9. The company paid $2,400 cash to settle the account payable created in transaction c.
10. The company purchased $20,100 of new office equipment by paying $20,100 cash.
11. The company completed $7,000 of services for a client, who must pay within 30 days.
12. The company paid $1,600 cash salary to an assistant.
13. The company received $3,500 cash in partial payment on the receivable created in transaction k.
14. The company paid a $2,800 cash dividend.

Required:
1. Prepare general journal entries to record these transactions using the following titles: 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).
2. Post the journal entries from part 1 to the ledger accounts.
3. Prepare a trial balance as of the end of September.

Answer 1

Answer :-

1)

	General journal	Debit($)	Credit($)
a	Cash	80,000.00
	Office Equipment	24,000.00
	Common Stock		104,000.00
b	Land	45,000.00
	Building	160,000.00
	Cash		25,000.00
	Notes Payable		180,000.00
c	Office supplies	2,400.00
	Accounts payable		2,400.00
d	Automobiles	16,500.00
	Common Stock		16,500.00
e	Office Equipment	5,900.00
	Accounts payable		5,900.00
f	Salaries Expense	1,600.00
	Cash		1,600.00
g	Cash	7,400.00
	Fees Earned		7,400.00
h	Utilities expense	645.00
	Cash		645.00
i	Accounts payable	2,400.00
	Cash		2,400.00
j	Office Equipment	20,100.00
	Cash		20,100.00
k	Accounts Receivable	7,000.00
	Fees Earned		7,000.00
l	Salaries expense	1,600.00
	Cash		1,600.00
m	Cash	3,500.00
	Accounts Receivable		3,500.00
n	Dividends	2,800.00
	Cash		2,800.00

2).

101: Cash
Transaction	Debit($)	Credit($)	Balance($)
a	80,000.00		80,000.00
b		25,000.00	55,000.00
f		1,600.00	53,400.00
g	7,400.00		60,800.00
h		645.00	60,155.00
i		2,400.00	57,755.00
j		20,100.00	37,655.00
l		1,600.00	35,855.00
m	3,500.00		39,355.00
n		2,800.00	36,755.00

108: Office Supplies
Transaction	Debit($)	Credit($)	Balance($)
c	2,400.00		2,400.00

164 : Automobiles
Transaction	Debit($)	Credit($)	Balance($)
d	16,500.00		16,500.00

172 : Land
Transaction	Debit($)	Credit($)	Balance($)
b	45,000.00		45,000.00

250 : Notes Payable
Transaction	Debit($)	Credit($)	Balance($)
b		180,000.00	180,000.00

319 : Dividends
Transaction	Debit($)	Credit($)	Balance($)
n	2,800.00		2,800.00

601 : Salaries Expense
Transaction	Debit($)	Credit($)	Balance($)
f	1,600.00		1,600.00
l	1,600.00		3,200.00

106 : Accounts Receivable
Transaction	Debit($)	Credit($)	Balance($)
k	7,000.00		7,000.00
m		3,500.00	3,500.00

163 : Office Equipment
Transaction	Debit($)	Credit($)	Balance($)
a	24,000.00		24,000.00
e	5,900.00	-	29,900.00
j	20,100.00		50,000.00

170 : Building
Transaction	Debit($)	Credit($)	Balance($)
b	160,000.00		160,000.00

201 : Accounts Payable
Transaction	Debit($)	Credit($)	Balance($)
c	-	2,400.00	2,400.00
e		5,900.00	8,300.00
i	2,400.00		5,900.00

307 : Common Stock
Transaction	Debit($)	Credit($)	Balance($)
a	-	104,000.00	104,000.00
d		16,500.00	120,500.00

402 : Fees Earned
Transaction	Debit($)	Credit($)	Balance($)
g	-	7,400.00	7,400.00
k		7,000.00	14,400.00

602 : utilities Expense
Transaction	Debit($)	Credit($)	Balance($)
h	645.00		645.00

3)

	Debit($)	Credit($)
Cash	36,755.00	-
Accounts Receivable	3,500.00	-
Office Supplies	2,400.00	-
Office Equipment	50,000.00	-
Automobiles	16,500.00	-
Building	160,000.00	-
Land	45,000.00	-
Accounts payable	-	5,900.00
Notes Payable	-	180,000.00
Common Stock	-	120,500.00
Dividends	2,800.00	-
Fees Earned	-	14,400.00
Salaries Expense	3,200.00	-
Utilities Expense	645.00	-
Total	320,800.00	320,800.00