Witter Consulting completed the following transactions during June. a. D. Witter, the owner, invested $82,000 cash along

Question:

Witter Consulting completed the following transactions during June.

a. D. Witter, the owner, invested $82,000 cash along with office equipment valued at $23,000 in the new company in exchange for common stock.

b. The company purchased land valued at $50,000 and a building valued at $165,000. The purchase is paid with $30,000 cash and a long-term note payable for $185,000.

c. The company purchased $2,200 of office supplies on credit.

d. D. Witter invested his personal automobile in the business in exchange for more common stock. The automobile has a value of $16,800 and is to be used exclusively in the business.

e. The company purchased $5,100 of additional office equipment on credit.

f. The company paid $1,500 cash salary to an assistant.

g. The company provided services to a client and collected $8,000 cash.

h. The company paid $630 cash for this month’s utilities.

i. The company paid $2,200 cash to settle the payable created in transaction c.

j. The company purchased $20,400 of new office equipment by paying $20,400 cash.

k. The company completed $6,500 of services for a client, who must pay within 30 days.

l. The company paid $2,000 cash salary to an assistant.

m. The company received $4,000 cash in partial payment on the receivable created in transaction k.

n. The company paid $2,700 cash for dividends.

Required

1. Prepare general journal entries to record these transactions (use account titles listed in part 2).

2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting—in the date column enter instead the reference to which transaction from (a) through (n).

3. Prepare a trial balance as of the end of June.

Common Stock
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