Matt opened a bookstore on April 1, 2011, selling new and used books. Matt contributed $4,000 in exchange for common stock to start the business, Matt’s Books.
Record each of the following transactions into T-accounts for the new company. Calculate the account balances and prepare an unadjusted trial balance at June 30, 2011.
1. On April 1, the company bought $2,000 of new books from its supplier with cash.
2. On April 30, customers brought in used books and the company purchased them for $550 cash.
3. On June 30, $1,000 of new books were sold for $3,000. Half of these sales were on account.
4. On June 30, the company sold all the used books for $1,500 cash.