After Creative Design’s first month of operations your friend delivers to you a stack of invoices, check stubs, receipts and her first VISA-Business bill. You must decipher these in order to enter them into the accounts.

After sorting through the source documents you make a list of transactions for the first month, April:

1.Jessi invested her life savings in the company $10,000.

2.Jessi purchased from Best Buy a computer and printer/ fax/ copier and monitor and software for $3500. She got a 12 month no interest credit arrangement and will make monthly payments to Best Buy. You decide this will all be equipment.

3.Jessi set up a credit account with an office supply store for supplies, and purchased supplies including printer paper, CDs, and ink for the printer for $200. Jessi gave you the bill but she does not have to make a payment until month end.

4.Jessi purchased a comfortable desk chair from a department store for $250. You decide this will be equipment.

7.Jessi’s CPA gave her some tax advice so she decided to develop a logo and other advertising materials for her car and customers. She had them printed and had her car painted with the new logo. This cost Jessi $500. You decide this will be expensed.

8.Jessi negotiated a business transaction with a local Mexican Restaurant just opening. She will work on a logo, menu, and flyers. The restaurant owner paid $200 down to be used against the first month’s bill. Jessi will bill the customer monthly based on her hours worked on the account.

9.Jessi designed a flyer for a local bakery and was paid cash of $150.

12.Jessi designed a CD cover for a friend who is a drummer in a local band. She was paid $400 for her work.

14.Jessi designed some POS material for a local coop market. She billed them for $500 for her work.

22.Jessi set up accounts to purchase stock photos for artwork and subscriptions $200. This is a prepaid asset until Jessi uses the photos.

23.Jessi designed and set up a website, email account, etc for herself. She paid $240 to register everything and will expense $20 per month against this amount.

24.Jessi wrote a check to herself to cover her rent and car insurance. $1,200.

Enter the above transactions into the journal and post them to the T accounts. Prepare an adjusted trial balance.