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

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

Short answer

The total trial balance matches at $291,350.

Step-by-step solution

No. of accounts

In the given case, there are 14 accounts in the general ledger, out of those 10 accounts have debit balances and the rest 4 of them have a credit balance. These accounts have been listed in the trial balance in step 2.

Trial Balance

Karla Tanner
Trial Balance
April 30
	Debit	Credit
Cash	$ 12,665
Accounts Receivables	2,250
Office Supplies	2,000
Office Equipment	50,900
Automobile	16,500
Building	160,000
Land	40,000
Accounts Payable		$ 5,600
Notes Payable		170,000
Common Stock		101,500
Dividends	2,800
Fees Earned		14,250
Salaries Expenses	3,600
Utilities Expenses	635
Total	$ 291,350	$ 291,350