Question

Eva’s Environmental Company is starting a new environmental analysis company on July 1, 2018. a. Eva invests $150,000 cash in her business from her personal savings account. b. Eva purchases Office Supplies for $7,500 on account payable c. Eva borrows $350,000 cash to start her new business from the bank for 10 years on a Note Payable. d. Eva prepays her Rent for office space for one year in advance for $3,600. e. Eva purchases an environmental assessment machine for $115,000 paying 30% in cash and the balance on a long-term note payable. f. Eva collects $21,500 in advance from a customer for a project she will work on in the future. g. Eva earns service revenue on account from her customers, $15,000 h. Eva pays for 40% of the Office Supplies she purchased. i. j. Eva withdraws $850 from the company for her personal use. k. Customers pay Eva $8,500 on account receivable for sales that were previously recorded Accounts: Cash, Accounts Receivable, Prepaid Insurance, Supplies, Equipment, Accounts Payable, Notes Payable, Bank Loan Payable, Unearned Revenue, Eva’s Capital, Eva’s Drawing, Service Revenue, Salary Expense, REQUIRED: a. Analyze the Business Transactions b. Record them in the Journal c. Post to the Ledgers d. Prepare a Trial Balance for July 31, 2018

Answer 1

	Date	General Journal	Debit	Credit
a		Cash	$150,000
		Eva’s Capital		$150,000
b		Suppliers	$7,500
		Accounts Payable		$7,500
c		Cash	$350,000
		Bank Loan Payable		$350,000
d		Prepaid Rent	$3,600
		Cash		$3,600
e		Equipment	$115,000
		Notes Payable		$80,500
		Cash		$34,500
f		Cash	$21,500
		Unearned Revenue		$21,500
g		Accounts Receivable	$15,000
		Service Revenue		$15,000
h		Accounts Payable	$3,000
		Cash		$3,000
i & j		Eva’s Drawing	$850
		Cash		$850
k		Cash	$8,500
		Accounts Receivable		$8,500
		Trial Balance
		Particulars	Debit	Credit
		Cash	$488,050
		Eva’s Capital		$150,000
		Supplies	$7,500
		Accounts Payable		$4,500
		Bank Loan Payable		$350,000
		Prepaid Rent	$3,600
		Equipment	$115,000
		Notes Payable		$80,500
		Unearned Revenue		$21,500
		Service Revenue		$15,000
		Eva’s Drawing	$850
		Accounts Receivable	$6,500
			$621,500	$621,500