Please see the attached file.
Sept. 1 Transferred $2,500 from personal savings account to business checking account.
Sept. 10 Signed up for home inspection course at local community college. Cost is $1,000. Put this on the business credit card.
Sept. 15 Purchased reference materials from local book store. Paid $250 cash.
Sept. 25 Signed up for home inspection licensing exam. Placed the $400 fee on the business credit card.
Oct. 1 Purchased a 1 year insurance policy for the business by putting the $2,400 premium on the business credit card.
Oct. 10 Paid $250 on the business credit card. (note: no interest has been charged to the account yet)
Oct. 15 Purchased tools for the business by paying $500 cash.
Oct. 30 Paid $200 to get business cards printed. (Note: this an advertising expense)
Oct. 31 Purchased candy baskets to leave at local realtors' offices to advertise business. Paid $100 cash.
Nov. 1 Purchased office supplies needed to prepare inspection reports. Paid $60 cash.
Nov. 1 Purchased truck costing $10,000 to use for business. Took out auto loan from local bank.
Nov. 8 Completed home inspections this week for clients, received checks for $1,200.
Nov. 15 Completed home inspections this week for clients, received checks totaling $1,600.
Nov. 25 Completed home inspections this week for clients, received checks totaling $750.
Nov. 30 Paid $250 on the business credit card (note: $25 was interest).
The solution explains how to prepare the journal entries, post to ledger and prepare a trial balance. There are two attachments for this solution. One is an Excel file containing the journal entries and the other is an Excel file containing the ledgers.