Demonstration Problem

Katrina Aung opened Katrina's Catering on September $1,2024.$ During the first month of operations, the following transactions occurred:

Sept. $1$ Invested $$15,000$ cash and cooking equipment worth $$5,000$ in the business.

$2$ Paid $$1,000$ cash for rent for the month of September.

$3$ Borrowed $$15,000$ cash from the bank and signed a $$15,000,$ six$-$month, $5\%$ note payable.

$5$ Purchased an industrial oven for $$20,000$ cash.

$6$ Paid $$1,200$ for a one$-$year insurance policy.

$10$ Received a bill for $$300$ from The Daily News for advertising the opening of the catering company.

$15$ Billed a nearby law firm $$500$ for catering services performed on account.

$20$ Withdrew $$700$ cash for personal use.

$25$ Received $$300$ cash from the law firm billed on September $15.$ The balance of the account will be collected in October.

$29$ Received a $$400$ cash advance from a customer for services to be performed in October.

$30$ Cash receipts for catering services performed for the month were $$6,200.$

$30$ Paid employee salaries of $$1,600.$

$30$ Paid The Daily News $$200$ of the amount owed from the bill received September $10.$

The chart of accounts for the company is the same as the one for Lynk Software Services in Illustration $2\mathrm{.}20$ except for the following: No$.610$ Advertising Expense and the names of the ca and drawings accounts.

Instructions

$2-27$

$59F$

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