Question
Following are transactions related to Peter new business for the month of December 2015.
1. The owner, Peter, invests $200,000 in cash in starting a real estate office.
2. Paid $10,000 in cash for two-years rent.
3. Purchased $ 10,000 office supplies on credit.
4. Paid $5000 cash on account for office supplies purchased in transaction 3.
5. Real estate commissions revenues billed to customers amount to $4000
6. Received cash of $ 3000 for services to be performed after 3 monthes.
7. Purchased office equipment for $30,000, paying $10,000 in cash and signed a 60-day, note payable for 12,000 and the balance on accounts.
8. Paid $ 4,000 cash for officer's salaries.
9. Peter withdrew $ 2000 from the business for personal expenses.
10. Received cash for $2,000 from a client in payment on account for commissions billed in transaction 5.
Instructions:
1- prepare journal entries for Peter new business for the month of december.
2- Post journal entries to general ledger, December 31, 2015.
3- Prepare the trial balance on december 31 , 2015.