Learning Objectives : Analyze the impact of business transactions on accounts;
record (journalize and post) transactions in the books;
construct and use a trial balance.
During the first month of operations, Arguetta Brickworks, Inc., completed the following transactions:
Learning Objectives : Analyze the impact of business transactions on accounts; construct and use a trial balance.
During the first month of operations (September 2014), Holt Music Services Corporation completed the following selected transactions:
a. The business received cash of $50,000 and a building with a fair value of $107,000. The corporation issued common stock to the stockholders.
b. Borrowed $60,000 from the bank; signed a note payable.
c. Paid $47,000 for music equipment.
d. Purchased supplies on account, $450.
e. Paid employees' salaries, $6,100.
f. Received $3,790 for music services performed for customers.
g. Performed services for customers on account, $12,800.
h. Paid $100 of the account payable created in transaction d.
i. Received a $700 bill for utility expense that will be paid in the near future.
j. Received cash on account, $1,600.
k. Paid the following cash expenses: (1) rent, $1,400; (2) advertising, $400.