Question

Business transactions completed by Hannah Venedict during the month of September are as follows.

a. Venedict invested \(60,000 cash along with office equipment valued at \)25,000 in exchange for common stock of a new company named HV Consulting.

b. The company purchased land valued at \(40,000 and a building valued at \)160,000. The purchase is paid with \(30,000 cash and a long-term note payable for \)170,000.

c. The company purchased \(2,000 of office supplies on credit.

d. Venedict invested her personal automobile in the company in exchange for more common stock. The automobile has a value of \)16,500 and is to be used exclusively in the business.

e. The company purchased \(5,600 of additional office equipment on credit.

f. The company paid \)1,800 cash salary to an assistant.

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

h. The company paid \)635 cash for this month’s utilities.

i. The company paid \(2,000 cash to settle the account payable created in transaction c.

j. The company purchased \)20,300 of new office equipment by paying \(20,300 cash.

k. The company completed \)6,250 of services for a client, who must pay within 30 days.

l. The company paid \(1,800 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 $2,800 cash in dividends.

Required

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

Short answer

The total of general journal matches at $356,685.

Step-by-step solution

Journal Entry (part 1)

General Journal
Page 1
Date	Description	PR	Debit	Credit
a	Cash	101	$ 60,000
	Office Equipment	163	25,000
	Common Stock	307		$ 85,000
	Being investment made into the business in the form of cash and equipment
b.	Land	172	40,000
	Building	170	160,000
	Cash	101		30,000
	Notes Payable	250		1,70,000
	Being land and building purchased against cash and notes payable
c	Office Supplies	108	2,000
	Accounts Payable	101		2,000
	Being office supplies purchased on credit
d	Automobiles	164	16,500
	Common Stock	307		16,500
	Being automobiles invested into the business
e	Office Equipment	163	5,600
	Accounts Payable	201		5,600
	Being equipment purchased on credit
f	Salaries Expense	601	1,800
	Cash	101		1,800
	Being salary paid to assistant
g	Cash	101	8,000
	Fees Earned	402		8,000
	Being Services provided and amount due
	Carried Forward		$ 318,900	$ 318,900

Journal Entry (part 2)

General Journal
Page 2
Date	Description	PR	Debit	Credit
	Brought Forward		$ 318,900	$ 318,900
h	Utilities Expense	602	635
	Cash	101		635
	Being utilities expenses incurred
i	Accounts Payable	201	2,000
	Cash	101		2,000
	Being account settled for equipment purchased
j.	Office Equipment	163	20,300
	Cash	101		20,300
	Being equipment purchased on credit
k	Accounts Receivables	101	6,250
	Fees Earned	402		6,250
	Being services provided to client and amount due
l	Salaries Expense	601	1,800
	Cash	101		1,800
	Being salaries expenses paid to assistant
m	Cash	101	4,000
	Accounts Receivables	106		4,000
	Being cash collected from the customer
n	Dividends	319	2,800
	Cash	101		2,800
	Being dividend paid
	Carried Forward		$ 356,685	$ 356,685