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 $155,000. The purchase is paid with $30,000 cash and a long-term note payable for $170,000.
3. The company purchased $1,600 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 $16,600 and is to be used exclusively in the business.
5. The company purchased $5,200 of additional office equipment on credit.
6. The company paid $2,000 cash salary to an assistant.
7. The company provided services to a client and collected $7,800 cash.
8. The company paid $640 cash for this month’s utilities.
9. The company paid $1,600 cash to settle the account payable created in transaction c.
10. The company purchased $20,200 of new office equipment by paying $20,200 cash.
11. The company completed $6,000 of services for a client, who must pay within 30 days.
12. The company paid $1,700 cash salary to an assistant.
13. The company received $3,000 cash in partial payment on the receivable created in transaction k.
14. The company paid a $2,900 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

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	155,000.00
	Cash		30,000.00
	Notes Payable		170,000.00
c	Office supplies	1,600.00
	Accounts payable		1,600.00
d	Automobiles	16,600.00
	Common Stock		16,600.00
e	Office Equipment	5,200.00
	Accounts payable		5,200.00
f	Salaries Expense	2,000.00
	Cash		2,000.00
g	Cash	7,800.00
	Fees Earned		7,800.00
h	Utilities expense	640.00
	Cash		640.00
i	Accounts payable	1,600.00
	Cash		1,600.00
j	Office Equipment	20,200.00
	Cash		20,200.00
k	Accounts Receivable	6,000.00
	Fees Earned		6,000.00
l	Salaries expense	1,700.00
	Cash		1,700.00
m	Cash	3,000.00
	Accounts Receivable		3,000.00
n	Dividends	2,900.00
	Cash		2,900.00

2.

101: Cash
Transaction	Debit	Credit	Balance
a	80,000.00		80,000.00
b		30,000.00	50,000.00
f		2,000.00	48,000.00
g	7,800.00		55,800.00
h		640.00	55,160.00
i		1,600.00	53,560.00
j		20,200.00	33,360.00
l		1,700.00	31,660.00
m	3,000.00		34,660.00
n		2,900.00	31,760.00

108: Office Supplies
Transaction	Debit	Credit	Balance
c	1,600.00		1,600.00

164 : Automobiles
Transaction	Debit	Credit	Balance
d	16,600.00		16,600.00

172 : Land
Transaction	Debit	Credit	Balance
b	45,000.00		45,000.00

250 : Notes Payable
Transaction	Debit	Credit	Balance
b		170,000.00	170,000.00

319 : Dividends
Transaction	Debit	Credit	Balance
n	2,900.00		2,900.00

601 : Salaries Expense
Transaction	Debit	Credit	Balance
f	2,000.00		2,000.00
l	1,700.00		3,700.00

106 : Accounts Receivable
Transaction	Debit	Credit	Balance
k	6,000.00		6,000.00
m		3,000.00	3,000.00

163 : Office Equipment
Transaction	Debit	Credit	Balance
a	24,000.00		24,000.00
e	5,200.00	-	29,200.00
j	20,200.00		49,400.00

170 : Building
Transaction	Debit	Credit	Balance
b	155,000.00		155,000.00

201 : Accounts Payable
Transaction	Debit	Credit	Balance
c	-	1,600.00	1,600.00
e		5,200.00	6,800.00
i	1,600.00		5,200.00

307 : Common Stock
Transaction	Debit	Credit	Balance
a	-	104,000.00	104,000.00
d		16,600.00	120,600.00

402 : Fees Earned
Transaction	Debit	Credit	Balance
g	-	7,800.00	7,800.00
k		6,000.00	13,800.00

602 : utilities Expense
Transaction	Debit	Credit	Balance
h	640.00		640.00

	Debit	Credit
Cash	31,760.00	-
Accounts Receivable	3,000.00	-
Office Supplies	1,600.00	-
Office Equipment	49,400.00	-
Automobiles	16,600.00	-
Building	155,000.00	-
Land	45,000.00	-
Accounts payable	-	5,200.00
Notes Payable	-	170,000.00
Common Stock	-	120,600.00
Dividends	2,900.00	-
Fees Earned	-	13,800.00
Salaries Expense	3,700.00	-
Utilities Expense	640.00	-
Total	309,600.00	309,600.00