Question

a- On June 1. S. Tom invested $ 95,000 cash and office equipment valued at $35,000 in the Company. b- On June 3. The company purchased a $ 70,000 building to use as an office. It paid $ 20,000 in cash and signed a note payable promising to pay the $ 50,000 balance over the next Three years. c- On June 8. The company paid $3,000 cash for this month's utilities.

          a- On June 1. S. Tom invested $ 95,000 cash and office equipment valued at
$35,000 in the Company.
b- On June 3. The company purchased a $ 70,000 building to use as an office.
It paid $ 20,000 in cash and signed a note payable promising to pay the $
50,000 balance over the next Three years.
c- On June 8. The company paid $3,000 cash for this month's utilities.

a- On June 1. S. Tom invested 95,000 cash and office equipment valued at35,000 in the Company.
b- On June 3. The company purchased a 70,000 building to use as an office.
It paid 20,000 in cash and signed a note payable promising to pay the 50,000 balance over the next Three years.
c- On June 8. The company paid3,000 cash for this month's utilities.

Added by Benjamin J.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Willis James

Step 1

- Assets: Cash, Office Equipment, Building - Liabilities: Notes Payable - Owner's Equity: S. Tom, Capital - Expense: Utilities Expense Show more…

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a- On June 1, S. Tom invested $95,000 cash and office equipment valued at $35,000 in the Company. b- On June 3, the company purchased a $70,000 building to use as an office. It paid $20,000 in cash and signed a note payable promising to pay the $50,000 balance over the next three years. c- On June 8, the company paid $3,000 cash for this month's utilities.