Reference no: EM131763286
Problem -
I) April 1 Stockholders invested $40,000 cash in the business in exchange for common stock.
4 Purchased land costing $30,000 for cash.
8 Incurred advertising expense of $1,800 on account.
11 Paid salaries to employee $1,500.
12 Hired park manager at a salary of $4,000 per month, effective May 1.
13 Paid $1,500 cash for a one year insurance policy.
17 Declared and paid a $1,000 cash dividend.
20 Received $5,700 in cash for admission fees.
25 Sold 100 coupon books for $25 each.Each book contains 10 coupons that entitle the holder to 1 admission per park.
30 Received $8,900 in cash admission fees.
30 Paid $900 on balance owed for advertisiing incurred on April 8.
Mendez uses the following account: Cash;Prepaid Insurance;Land;Accounts payable;Unearned Admissions Revenue; Common Stock;Dividends; Admission Revenue; Advertising Expense; and Salaries Expense.
II) Jane Kent is a Licensed CPA. During the first month of operations of her business, Jane Kent Inc, the following events and transactions occurred.
May 1 Stockholders invested $25,000 cash in exchange for comon stock.
2 Hired a secretary-receptionist at a salary of $2,000 per month.
3 Purchased $2,500 of supplies on acount from Read Supply Company.
7 Paid office rent of $900 cash for the month.
11 Completed a tax assignment and billed client $2,100 for services provided.
12 Received $3,500 advance on a management consulting engagement .
17 Received cash of $1,200 for services completed for H. Arnold Co.
31 Paid Secretary-receptionist $2,000 salry for the month.
31 Paid 40% of balance due Read Supply Company.
Jane uses the following chart accounts: No. 101 Cash, Mo. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No.311 Common Stock, No. 400 Service Revenue, no. 726 Salaries Expense, and No. 729, Rent Expense.
Instructions
(a) Journalize the transactions.
(b) Post to the lefger accounts
(c) Prepare a trial balance on May 31, 2008.