A. Emmit invested $82,000 cash along with office equipment valued at $22,000 in a new company named AE consulting.
b. the company purchased land valued at $40,000 and a building valued at $165,000. The purchase is paid with $25,000 cash and a long-term note payable for $180,000
c. the company purchased $1,700 of office supplies on credit
d. Emmit invested her personal automobile in the company. The automobile has a value of 16, 800 and is to be used exclusively in the business.
e. the company purchased $5,900 of additional office equipment on credit
f. the company paid $1,500 cash salary to an assistant
g. The company provided services to a client and collected $7,600 cash
h. the company paid $630 cash for this months utilities.
i. the company paid 1,700 cash to settle the account payable created in transaction c.
j. the company purchased $20,200 of new office equipment by paying 20,200 in cash.
k. the company completed $6,750 of services for a client, who must pay within 30 days.
l. the company paid 2,000 cash salary to an assistant
m. the company received 4,000 cash in partial payment on the receivable created in transaction k.
n. Emmit withdrew $2,900 cash from the company for personal use.
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 the 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); a. Emmit capital (301); a Emmit withdrawals (302); fees earned (402); salaries expense (601); and utilities expense (602);. Post the journal entries from part 1 to ledger accounts and enter the balance after each posting.
3. Prepare a trial balance as of the end of September.
The solution determines answers to accounting journal/trial balance questions regarding investing money in a new company named AE consulting.