Reference no: EM133088426

Question - Management Services, Inc. Company was organized on June 1, 2021. The following events occurred during the first month.

(a) Received $70,000 cash from the 6 investors who organized Nathanson Corporation. Each investor received 100 shares of $10 par value common stock.

(b) Purchased equipment for use in the business at a cost of $12,000; one third was paid in cash and the company signed a note for the balance.

(c) One investor purchased a $1,000 computer for his own personal use, paid in cash.

(d) In early June, paid $9,000 of advertisement covering six months, June through November.

(e) In the middle of June, received from the clients $8,000 cash in advance for management service for June through December.

(f) At the end of June, paid wages to its 3 employees. Each was paid $2,000 in cash.

Required -

1. For each of the events, prepare journal entries if a transaction of the business exists, checking that debits equal credits. If a transaction does not exist, write NE.

2. Calculate the ending balance of Cash on June 30, 2021.