Reference no: EM132775020
During June the following events occurred.
6/1 Four investors invested $400,000 cash into the business in exchange for common stock.
6/2 The company purchased a hotel building for $800,000 and land for $100,000. The company paid $250,000 in cash and signed note payable for $650,000. The note is due in 15 years, with interest payable monthly.
6/3 Paid $6,000 for a six-month insurance policy on the hotel.
6/5 Purchased supplies costing $4,000 on account.
6/10 Received advance payments of $12,000 from customers that will be staying at the hotel in July.
Payments will be refunded if the customer cancels within 7 days of their scheduled arrival time.
6/14 Received cash payments of $13,000 from current customers staying at the hotel in June.
6/15 Paid $2,000 cash for staff salaries.
6/16 Paid $500 for maintenance expense.
6/17 Received $10,000 payment for a wedding reception hosted that day.
6/18 Paid $2,500 for catering expenses.
6/19 Paid event expenses of $1,000 for table and chair rentals.
6/20 Paid event expenses of $2,000 for flowers.
6/21 Paid for the supplies purchased on June 5.
6/25 Recorded an additional $5,000 cash received from current hotel customers for June.
6/26 Paid $2,000 cash for staff salaries.
6/27 The company paid $4,000 in cash dividends.
6/30 A count of supplies indicated that supplies totaling $1,200 remained in the supply closet.
6/30 The controller estimates that the building will be used by the company for 15 years.
Problem 1: Using the attached T-account template, prepare the entries to recognize the June transactions, including any required month-end adjusting entries.