Question

Nuncio Consulting completed the following transactions during June.

a. Armand Nuncio, the owner, invested \(35,000 cash along with office equipment valued at \)11,000 in the new company in exchange for common stock.

b. The company purchased land valued at \(7,500 and a building valued at \)40,000. The purchase is paid with \(15,000 cash and a long-term note payable for \)32,500.

c. The company purchased \(500 of office supplies on credit.

d. Nuncio invested his personal automobile in the company in exchange for more common stock. The automobile has a value of \)8,000 and is to be used exclusively in the business.

e. The company purchased \(1,200 of additional office equipment on credit.

f. The company paid \)1,000 cash salary to an assistant.

g. The company provided services to a client and collected \(3,200 cash.

h. The company paid \)540 cash for this month’s utilities.

i. The company paid \(500 cash to settle the payable created in transaction c.

j. The company purchased \)3,400 of new office equipment by paying \(3,400 cash.

k. The company completed \)4,200 of services for a client, who must pay within 30 days.

l. The company paid \(1,000 cash salary to an assistant.

m. The company received \)2,200 cash in partial payment on the receivable created in transaction k.

n. The company paid $1,100 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 $119,840.

Step-by-step solution

Journal Entry (part 1)

General Journal
Page 1
Date	Description	PR	Debit	Credit
a.	Cash	101	$ 35,000
	Office Equipment	163	11,000
	Common Stock	307		$ 46,000
	Being investment made into the business in the form of cash and equipment
b.	Land	172	7,500
	Building	170	40,000
	Cash	101		15,000
	Notes Payable	250		32,500
	Being land and building purchased against cash and notes payable
c.	Office Supplies	108	500
	Accounts Payable	101		500
	Being office supplies purchased on credit
d.	Automobiles	164	8,000
	Common Stock	307		8,000
	Being automobiles invested into the business
e.	Office Equipment	163	1,200
	Accounts Payable	201		1,200
	Being equipment purchased on credit
f.	Salaries Expense	601	1,000
	Cash	101		1,000
	Being salary paid to assistant
g	Cash	101	3,200
	Fees Earned	402		3,200
	Being Services provided and amount due
	Carried Forward		$ 107,400	$ 107,400

Journal Entry (part 2)

General Journal
Page 2
Date	Description	PR	Debit	Credit
	Brought Forward		$ 107,400	$ 107,400
h	Utilities Expense	602	540
	Cash	101		540
	Being utilities expenses incurred
i	Accounts Payable	201	500
	Cash	101		500
	Being account settled for equipment purchased
j.	Office Equipment	163	3,400
	Cash	101		3,400
	Being equipment purchased on credit
k	Accounts Receivables	101	4,200
	Fees Earned	402		4,200
	Being services provided to client and amount due
l	Salaries Expense	601	1,000
	Cash	101		1,000
	Being salaries expenses paid to assistant
m	Cash	101	2,200
	Accounts Receivables	106		2,200
	Being cash collected from the customer
n	Dividends	319	1,100
	Cash	101		1,100
	Being dividend paid
	Carried Forward		$ 119,840	$ 119,840