Question

In: Accounting

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

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.

Solutions

Expert Solution

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

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