Reference no: EM132325700

Question

You need help recording journal entries to summarize the transactions from August 18 (start of business) to October 31.

8/18/19 - borrowed $28,000

8/21/19 - deposited loan and $30,500 of own money into a bank account

8/26/19 - signed one year lease on building ($3,200 per month, requires one month payment in August for September's rent, plus $3,500 security deposit).

8/28/19 - Purchased computer equipment$17,000, software $6,200, office furniture $8,500.

8/28/19 - Business stationary, business cards, and various other office supplies costing $1,550.

8/30/19 - signed a one year umbrella business insurance policy for $2,100 for liability insurance and renters insurance.

9/1/19 - Opened for business.

9/1/19 - Spent all but $16,450 of the company's cash.

2 Month Operation Results

Clients paid $49,500 for completed work. Company A still owed $10,500 for completed work delivered in October. No current projects.

Purchased additional office supplies for cash $1,500, with supplies that cost $1,300 still on hand.

Paid two months rent of $6,400 for September and October, utility bills of $1,975, repair of equipment paid of $3,800, and $36,000 of four peoples salary paid (plus $6,00 paid to owner).

Additional office equipment for $7,000 and a one year software lease for $1,300 purchased on 10/30/19. Half of that amount was paid for, and remainder due one month later.