Learning Objectives:
Analyze the impact of business transactions on accounts; construct and use a trial balance.
During the first month of operations (March 2014), Lone Star Entertainment Corporation completed the following selected transactions:
a. The business received cash of $38,000 and a building with a fair value of $110,000. The corporation issued common stock to the stockholders.
b. Borrowed $50,000 from the bank; signed a note payable.
c. Paid $45,500 for music equipment.
d. Purchased supplies on account, $1,900.
e. Paid employees' salaries, $4,200.
f. Received $4,600 for music service performed for customers.
g. Performed service for customers on account, $3,600.
h. Paid $400 of the account payable created in transaction d.
i. Received a $900 bill for utilities expense that will be paid in the near future.
j. Received cash on account, $1,200.
k. Paid the following cash expenses: (1) rent-$1,800; (2) advertising-$950.