Harmony Cabot opened a music store in a local mall, selling CDs and tapes. She invested $80,000 in the business and borrowed $140,000 from a local bank. The following additional events occurred during April, the first month of operations:
a. Paid cash for equipment costing $45,150.
b. Purchased an inventory of CDs and tapes for $129,600 in cash.
c. Sold one third of the CDs and tapes for a cash sales price of $85,000.
d. Paid expenses as follows:
|
Employee wages |
$12,300 |
|
Rent |
15,500 |
|
Utilities |
4,800 |
|
Postage |
650 |
|
Insurance |
1,290 |
Record the transactions using the format shown in the chapter.