Reference no: EM131818178
Ro Barry is a skin care specialist. During the month of June she started a new incorporated spa business with the following transactions:
June 1 Ro began her business by finding investors to contribute $10,000 into a checking account in the name of the corporation in exchange for 1,000 shares of common stock of the corporation.
1 Purchased a new massage table (fixed asset) costing $24,000. Paid $4,000 cash and signed a $20,000 note payable for the balance. The note carries an interest rate of 12%(1% per month) and requires interest to be paid monthly. The first interest payment is due July 1.
2 Purchased a one year insurance policy for $1,200. The policy begins immediately.
4 Purchased supplies on account for $500.
5 Completed a wedding party prep and billed the customer $1,200.
8 Hired an assistant at $10 per hour.
10 Purchased supplies for $200 in cash.
11 Received a $1,200 check from the customer billed on June 5.
14 Paid the assistant $250 for 25 hours of work.
22 Received a telephone bill for $60, due next month.
27 Received a $1,000 deposit from a customer for a large spa package that will not be started or completed until the following month.
REQUIRED
a) Journalize the June transactions.
b) Post the June entries to the ledger.
c) Prepare a trial balance as of June 30th.