Step-by-step explanation:
Sure, here's a step-by-step breakdown of the transactions and the corresponding journal entries:
1. Hannah Venedict invested $90,000 cash along with office equipment valued at $21,000 in the new business named HV Consulting.
- Debit: Cash ($90,000)
- Debit: Office Equipment ($21,000)
- Credit: H. Venedict, Capital ($111,000)
2. The company purchased land valued at $35,000 and a building valued at $160,000. The purchase is paid with $25,000 cash and a note payable for $170,000.
- Debit: Land ($35,000)
- Debit: Building ($160,000)
- Credit: Cash ($25,000)
- Credit: Notes Payable ($170,000)
3. The company purchased $1,600 of office supplies on credit.
- Debit: Office Supplies ($1,600)
- Credit: Accounts Payable ($1,600)
4. Venedict invested an automobile in the company. The automobile has a value of $16,900.
- Debit: Automobiles ($16,900)
- Credit: H. Venedict, Capital ($16,900)
5. The company purchased $5,900 of additional office equipment on credit.
- Debit: Office Equipment ($5,900)
- Credit: Accounts Payable ($5,900)
6. The company paid $1,900 cash salary to an assistant.
- Debit: Salaries Expense ($1,900)
- Credit: Cash ($1,900)
7. The company provided services to a client and collected $7,200 cash.
- Debit: Cash ($7,200)
- Credit: Consulting Revenue ($7,200)
8. The company paid $635 cash for this month's utilities.
- Debit: Utilities Expense ($635)
- Credit: Cash ($635)
9. The company paid $1,600 cash to settle the accounts payable created in transaction 3.
- Debit: Accounts Payable ($1,600)
- Credit: Cash ($1,600)
10. The company purchased $20,500 of new office equipment by paying $20,500 cash.
- Debit: Office Equipment ($20,500)
- Credit: Cash ($20,500)
11. The company completed $6,500 of services on credit for a client, who must pay within 30 days.
- Debit: Accounts Receivable ($6,500)
- Credit: Consulting Revenue ($6,500)
12. The company paid $1,700 cash salary to an assistant.
- Debit: Salaries Expense ($1,700)
- Credit: Cash ($1,700)
13. The company received $4,000 cash in partial payment on the accounts receivable created in transaction 11.
- Debit: Cash ($4,000)
- Credit: Accounts Receivable ($4,000)
14. Venedict withdrew $2,600 cash from the company for personal use.
- Debit: H. Venedict, Withdrawals ($2,600)
- Credit: Cash ($2,600)
After recording the journal entries, you would then post them to the respective ledger accounts. Finally, you can prepare a trial balance by listing all the account balances and ensuring that the total debits equal the total credits.