P2-6A_HV CONSULTING

Problem 2-6A_ HV CONSULTING

Business transactions completed by Hannah Venedict during
the month of September are as follows.
a. Venedict invested
$60,000 cash along with office equipment valued at $25,000 in exchange for
common stock of a new company named HV Consulting.
b. The company
purchased land valued at $40,000 and a building valued at $160,000. The
purchase is paid with $30,000 cash and a long-term note payable for $170,000.
c. The company
purchased $2,000 of office supplies on credit.
d. 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.
e. The company
purchased $5,600 of additional office equipment on credit.
f. The company paid
$1,800 cash salary to an assistant.
g. The company
provided services to a client and collected $8,000 cash.
h. The company paid
$635 cash for this month’s utilities.
i. The company paid
$2,000 cash to settle the account payable created in transaction c.
j. The company
purchased $20,300 of new office equipment by paying $20,300 cash.
k. The company
completed $6,250 of services for a client, who must pay within 30 days.
l. The company paid
$1,800 cash salary to an assistant.
m. The company received $4,000 cash in partial payment on
the receivable created in transaction k.
n. The company paid
$2,800 cash in dividends.
Required
1. Prepare general journal entries to record these
transactions (use account titles listed in part 2).
2. Open the following ledger accounts—their account numbers
are in parentheses (use the balance column format): 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). Post the journal entries from part 1 to the ledger accounts and
enter the balance after each posting.
3. Prepare a trial balance as of the end of September.