Question Description Record the transactions Record the transactions, You started your company with $80,000 that you raised

Question Description

Record the transactions

Transcribed Image Text:

Record the transactions, You started your company with $80,000 that you raised by selling stock in Practice Makes Perfect Inc. to your family and friends. 2. You purchased three pianos for $16,000 each, paying cash. You believe these pianos will last four years before you replace them. You expect the salvage value to be zero. 3. Knowing that you would need additional funds, you presented your business plan to the bank and were able to get a $60,000 loan at 12%. 4. You spent $2,000 on supplies (inventory), which you charged on account. 5. The newspaper bills you $400 for the advertisement you ran. You plan on paying the bill next month. 6. The first month you bill students $2,000 for lessons. 7. Rent for the space you have leased is $1,000 a month, which you paid. 8. You pay your two part-time piano teachers $500 each at the end of the month. 9. One of your students paid the $200 invoice you sent earlier in the month. 10. You adjust the supplies (inventory) account for $300 of sheet music that you gave to students. 11. You write the check for the interest owed for the month. 12. You record one month of depreciation on the pianos. Record the transactions, You started your company with $80,000 that you raised by selling stock in Practice Makes Perfect Inc. to your family and friends. 2. You purchased three pianos for $16,000 each, paying cash. You believe these pianos will last four years before you replace them. You expect the salvage value to be zero. 3. Knowing that you would need additional funds, you presented your business plan to the bank and were able to get a $60,000 loan at 12%. 4. You spent $2,000 on supplies (inventory), which you charged on account. 5. The newspaper bills you $400 for the advertisement you ran. You plan on paying the bill next month. 6. The first month you bill students $2,000 for lessons. 7. Rent for the space you have leased is $1,000 a month, which you paid. 8. You pay your two part-time piano teachers $500 each at the end of the month. 9. One of your students paid the $200 invoice you sent earlier in the month. 10. You adjust the supplies (inventory) account for $300 of sheet music that you gave to students. 11. You write the check for the interest owed for the month. 12. You record one month of depreciation on the pianos.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below x A L E 1 Cash Ac Capital Ac 80... View the full answer