Question

Nuncio Consulting completed the following transactions during June

a.

Nuncio, the owner, invested $35,000 cash along with office equipment valued at $11,000 in the

new company.

b. The company purchased land valued at $ 7,500 and a building valued at $40,000. The purchase

is paid with $15,000 cash and a long-term note payable for $32,500

c.

The company purchased $500 of office supplies on credit

d. Nuncio invested his personal automobile in the company. The automobile has a value of $8,000

and is to be used exclusively in the business.

e. The company purchased $1,200 of additional office equipment on credit

f.

The company paid $1,000 cash salary to an assistant

g.

The company provided services to a client and collected $3,200 cash

h. The company paid $540 cash for this month’s utilities

i.

The company paid $500 cash to settle the payable created in transaction

c

j.

The company purchased $3,400 of new office equipment by paying $3,400 cash

k.

The company paid $1,000 cash salary to an assistant

l.

The company received $2,200 cash in partial payment on the receivable created in transaction

k

m. Nuncio withdrew $1,100 cash from the company for personal use

REQUIRED

1. Make journal entries to record the transactions above.

2. Open Ledger accounts to record the above transactions; ( use: Cash , AR, Office Supplies,

Office Equipment, Automobiles, Buildings, Land, AP, Notes Payable, Capital, Withdrawals,

Revenue Earned, Salaries Expense, and Utilities Expense)

3. Balance the Accounts and Extract a Trial Balance as of the end of June

Answer 1