Reference no: EM132969817

John Party Goods Wholesaler has business transaction listed in document 'Financial Transactions - John Party Goods' which is available in appendix.

Problem 1: They would like you to record journal entries for these transactions. Determine the balance in the cash account at the end of the first month.

Financial Transactions - John Party Goods

Following transactions were conducted by the business during the first month of operations:

a) Received $150,000 cash from investors for ownership in the company.

b) Purchased inventory to be sold to customers, $45,000 on account.

c) Rented warehouse space, $6,000 was paid for this month.

d) Sold $5,000 of inventory on account (you have not been paid yet), sales price of $7,500.

e) Acquired office furniture for $3,000 cash

f) Paid $12,000 to employees who worked this month.

g) Acquired manufacturing equipment costing $39,000, paid cash.

h) Paid $700 for janitorial service.

i) Received a $100 utility bill for this month.

j) Collected $7,500 owed from customers.