Needs to be in an Excel horizontal transaction template ~
Transactions:
SoftBrook is a new company started by B. Martin. Record the following transactions which occurred during the first month of business:
1. Owner invests $77,500 into the business, allocating into the following assets: $45,000 cash, office equipment costing $4,500, and an additional $28,000 of computer equipment.
2. Owner buys a plot of land for $24,000 for a future office paying $4,800 in cash and signing a long term note for $19,200.
3. Owner purchases a portable office/trailer for $21,000 cash and secures trailer on the new land. The trailer has a useful life of 2 years, w/ $3,000 estimated salvage value.
4. Pays $6,600 insurance premium for a 2 year insurance policy on the office trailer.
5. Provides and bills $3,200 of services to client and is paid in cash.
6. Purchases an additional $3,500 of computer equipment for $700 in cash and a long term note for $2,800.
7. Provides $3,750 of services to client, payment to be received within 30 days.
8. Purchases on credit additional office equipment for $750.
9. Provides $9,200 of client services on credit.
10. Received a rent bill of $320 for testing device used on one of the completed jobs, to be paid within 30 days.
11. Collects $4,600 cash from client services on transaction #9.
12. Pays $1,600 wages to employee.
13. Pays $750 cash for the office equipment, #8.
14. Pays $450 cash for repairs to computer equipment.
15. Withdraws $3,875 cash for personal use.
16. Pays $1,600 wages to employee.
17. Pays $800 cash for advertising for the first month.
18. Records insurance expense for one month.
19. Records one month's depreciation on office trailer (hint: record $750 of depreciation).