chapter02probsetc - PROBLEM SET C PROBLEM 2-1C Professor...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
PROBLEM SET C PROBLEM 2-1C Professor Obsessor has created the untimate learning experience. She has created a system for students to learn by using a new electronic learning program She opens the Simulated Brain Learning Service and completes the following transactions in June: June 1 Obsessor invests $15,000 in the business in exchange for common stock. 3 Purchased $1,600 of brain simulator equipment on account. 4 Paid $250 premium for a two-year insurance policy. 6 Purchased new hard drive with cash, $400. 9 Purchased a new server for $9,000. Paid $3,000 cash and agreed to pay the remainder in 30 days. 10 Billed student Nancy Neuron $30 for tutorial services. 14 Paid for the equipment purchased on June 3. 22 Received $250 invoice for June advertising in Education magazine. 25 Received $35 cash from student David Duh for tutorial services. 30 Student billed on June 10 paid amount due. 30 Lenny Loser student sues business Business pays $1000 legal fees. 30 More students threaten to sue. Paid $500 cash for dividends so Obsessor can buy a ticket out of town. Required 1. Prepare general journal entries to record these transactions (use account titles listed in part 2 ). 2. Open the following ledger accounts (use the balance column format): Cash (101); Accounts Receivable (106); Supplies (124); Prepaid Insurance (128); Computer Equipment (163); Accounts Payable (201); Common Stock (301); Dividends (302); Services Revenue (403); Legal Expense (650) and Advertising Expense (690). Post journal entries from part 1 to the ledger accounts and enter the balance after each posting. 3.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/09/2010 for the course ACCNT act 201 taught by Professor Brat during the Spring '10 term at Columbia College.

Page1 / 3

chapter02probsetc - PROBLEM SET C PROBLEM 2-1C Professor...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online