Thank you so much for any help! Greatly appreciated! Problem 7.1 1 and 7 only (p

Question

Thank you so much for any help! Greatly appreciated!

Problem 7.1 1 and 7 only (pages 208-209): Biando Corporation began operations on May 1, 2010 and completed the following transactions during its first month of operations.

A. Sold capital stock for $30,000.
B. Purchased land and building valued at $35,000 and $165,000, respectively, by paying $10,000 cash and signing a 20-year mortgage for the balance.
C. Purchased office equipment on account, $7,500.
D. Billed a customer for services performed, $5,000.
E. Received an $800 deposit from a customer for services to be performed next month.
F. Made a partial payment on account for the office equipment purchased in transaction (C), $1,500.
G. Performed a service and immediately collected $2,000.
H. Received and immediately paid the telephone bill for the month, $380.
I. Paid a dividend to owners, $3,000.
J. Received, but did not pay, the monthly utility bill, $450.

1. Prepare the general journal entries to record each of these events.

7. Prepare the closing entries.

Explanation / Answer

Hi,

Please find the answers as follows:

Answered part 1 of your question. Its getting really lengthy. Please check and rate for Requirement 1 only.

a)

Cash Dr. 30000

Capital Stock Cr. 30000

b)

Land Dr. 35000

Building Dr. 165000

Cash Cr. 10000

Note Payable Cr. 190000

c)

Office Equipment Dr. 7500

Accounts Payable Cr. 7500

d)

Accounts Receivable Dr. 5000

Fees Earned Cr. 5000

e)

Cash Dr. 800

Unearned Fees Cr. 800

f)

Accounts Payable Dr. 1500

Cash Cr. 1500

g)

Cash Dr. 2000

Fees Earned Cr. 2000

h)

Utility Expense Dr. 380

Cash Cr. 380

i)

Retained Earnings Dr. 3000

Cash Cr. 3000

j)

Utilites Expense Dr. 450

Utilities Payable Cr. 450

Thanks.

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