The following transactions occurred in the first month of operations and are reflected in the gneral ledger account balances. Please explain what these mean and what I would do with them in a general Ledger. July 1. 2020. Liz Burnes and her brother, James each invested $15,000 in a corporation they formed to run Diner 64, Inc. Each were issued
The following transactions occurred in the first month of operations and are reflected in the géneral ledger account balances. Please explain what these mean and what I would do with them in a general Ledger.
July 1. 2020. Liz Burnes and her brother, James each invested $15,000 in a corporation they formed
to run Diner 64, Inc. Each were issued 1,500 shares of $10 par value common stock.
July 1, 2020 The corporation took a $30,000 small business loan from a local bank. The loan is an
'interest only' loan for three years at a fixed rate of 12% per year. A balloon payment of the principal will be due in 3 years. The monthly interest payment is due by the 10th of the following month.
July 1,2020. Because this was a new business, the landlord required the business to prepay
$6,000 for the rent for the first six month, plus a $1,500 security deposit for a total cash outlay
of $7.500.
July 1, 2020 The business purchased equipment and fixtures for $20,000 in cash.
The assets have a useful life of 10 years.
July 1, 2020 The company purchased à delivery van value at $40,000 with a $15,000 down payment and a 3-year, $25,000 note payable with an annual intereste rate of 6%. The truck has a 10-year useful life. The monthly payment including principal and interest is $760.55.
July 8, 2020 Preston Hill, a local Bed & Breakfast (B & B), arranges with Diner 64 to provide breakfast for their guests at $10 per person per day. Diner 64 will bill the B & B at the end of each month for the meals provided. Payment is required by the 10th of the next month
July 15,2020 Paid $4 800 for two-year fire and liability insurance with coverage beginning September 1. 2020
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