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

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

Short answer

The total of trial balance matches at $95,100.

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	$ 17,860
Accounts Receivables	2,000
Office Supplies	500
Office Equipment	15,600
Automobile	8,000
Building	40,000
Land	7,500
Accounts Payable		$ 1,200
Notes Payable		32,500
Common Stock		54,000
Dividends	1,100
Fees Earned		7,400
Salaries Expenses	2,000
Utilities Expenses	540
Total	$ 95,150	$ 95,100