After playing several seasons of professional football, George, Harris has saved enough money to start a business, to be called Number One Auto Rental. The transactions during March while the new business was being organized are listed below: Mar. 1George invested $140,000 cash in the business by making a deposit in a bank account in the name of the new company. Mar. 3The new company purchased land and building at a cost of $ 120,000 pf which $72,000 was regarded as applicable to the land and $48,000 to the building. The transaction involved a cash payment of $41,500 and the issuance of a note payable for $ 78,500. Mar. 5 Purchased 20 new automobiles at $8,600 each from Fleet Sales Company. Period $40,000 cash and agreed to pay $32,000 by March 31 and the remaining balance by April 15. The liability is viewed as an account payable. Mar 7 Sold an automobile at cost to Harris’s father in law. Howard Facey, who paid $2,400 in cash and agreed to pay the balance within 30 days. Mar 8 One of the automobiles was found to be defective and was returned to Fleet Sales company. The amount payable tot his creditor was thereby reduced by $8,600. Mar 20 Purchased office equipment at a cost of $4,000 cash. Mar 31. Issued a check for $32,000 in partial payment of the liability to Fleet Sales Company. a.Journalize the March transactions. b.Post to ledger account. Use the running balance form of legder account. Prepare a trial balance at March 31,19
After playing several seasons of professional football, George, Harris has saved enough money to start a business, to be called Number One Auto Rental. The transactions during March while the new business was being organized are listed below:
Mar. 1George invested $140,000 cash in the business by making a deposit in a bank account in the name of the new company.
Mar. 3The new company purchased land and building at a cost of $ 120,000 pf which $72,000 was regarded as applicable to the land and $48,000 to the building. The transaction involved a cash payment of $41,500 and the issuance of a note payable for $ 78,500.
Mar. 5 Purchased 20 new automobiles at $8,600 each from Fleet Sales Company. Period $40,000 cash and agreed to pay $32,000 by March 31 and the remaining balance by April 15. The liability is viewed as an account payable.
Mar 7 Sold an automobile at cost to Harris’s father in law. Howard Facey, who paid $2,400 in cash and agreed to pay the balance within 30 days.
Mar 8 One of the automobiles was found to be defective and was returned to Fleet Sales company. The amount payable tot his creditor was thereby reduced by $8,600.
Mar 20 Purchased office equipment at a cost of $4,000 cash.
Mar 31. Issued a check for $32,000 in partial payment of the liability to Fleet Sales Company.
a.Journalize the March transactions.
b.Post to ledger account. Use the running balance form of legder account. Prepare a
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