Question: During the first month of operations March 2014 Lone Star

During the first month of operations (March 2014), Lone Star Entertainment Corporation completed the following selected transactions:
a. The business received cash of $38,000 and a building with a fair value of $110,000. The corporation issued common stock to the stockholders.
b. Borrowed $50,000 from the bank; signed a note payable.
c. Paid $45,500 for music equipment.
d. Purchased supplies on account, $1,900.
e. Paid employees’ salaries, $4,200.
f. Received $4,600 for music service performed for customers.
g. Performed service for customers on account, $3,600.
h. Paid $400 of the account payable created in transaction d.
i. Received a $900 bill for utilities expense that will be paid in the near future.
j. Received cash on account, $1,200.
k. Paid the following cash expenses: (1) rent—$1,800; (2) advertising—$950.

1. Record each transaction directly in the T-accounts without using a journal. Use the letters to identify the transactions.
2. Prepare the trial balance of Lone Star Entertainment Corporation at March 31, 2014.

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  • CreatedJuly 25, 2014
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