need help with this 459496

Here is an example to record the owner’s investment to start the business:

‘ Cash 54,000.

o Common stock 54,000.

Use the following account titles for this scenario:

‘ Accounts:

o Assets:

? Cash.

? Accounts Receivable.

? Prepaid Rent.

? Office Equipment.

? Automobiles.

o Liabilities:

? Accounts Payable.

? Interest Payable.

? Note Payable.

o Owner’s Equity:

? Common stock.

o Expenses:

? Automobile Expense.

? Rent Expense.

? Utilities Expense.

? Salaries Expense.

? Interest Expense.

? Telephone Expense.

o Revenues:

? Service Revenue.

‘ Transactions:

1. Justine Malone invested $54,000 in cash to start the business.

2. Paid $3,000 for 3 month’s rent.

3. Bought a used automobile for the firm for $16,000 in cash.

4. Performed services for $3,000 in cash.

5. Paid $400 for automobile repairs.

6. Performed legal services for $3,750 on credit.

7. Borrowed $25,000 from the local bank to help expand his business.

8. Purchased office chairs for $2,100 on credit.

9. Received $1,800 from credit clients.

10. Paid $1,000 on account to reduce the amount owed for the office chairs (purchased in #8).

11. Issued a check for $560 to pay the monthly utility bill.

12. Purchased office equipment for $8,400. Paid half in cash; the remainder to be paid in 30 days.

13. Issued a check for $5,680 to pay salaries.

14. Performed legal services for $1,850 in cash.

15. Performed legal services for $2,600 on credit.

16. Collected $1,600 on accounts receivable from charge clients.

17. One month’s worth of rent (paid in #2 above) has expired.

18. One month’s interest $145 accrued on the note payable (from number 7 above