Reference no: EM132724466
Problem 1: Oleg Buzzini is the sole stockholder of Cutting Edge Fashion Corporation, a fashion consulting firm that earns its revenue in the form of consulting fees. Below are the transactions which occurred in the operation of Cutting Edge during the month of June. Record each transaction of Cutting Edge on the worksheet that has been supplied for this purpose, including entries in the description column in proper form where required. There is no need to total all of the columns.
July 1 Purchased Building at a cost of $180,000, making a cash down payment of $20,000. Borrowed the rest from a bank and issued a promissory note for the amount due.
July 4 Performed consulting services for a client on account, $14,000
July 12 Oleg Buzzini purchased stock in Cutting Edge for $15,000.
July 18 A customer paid $16,000 to Cutting Edge on account
July 20 Paid salary of assistant, $4,500
July 31 Paid $1,000 to the bank, of which $150 was interest and the rest
was a repayment of the loan.
July 31 Cutting Edge paid Buzzini a dividend of $500