Problem 2-1
Joe Smith CPA completed the following transactions in the month of June .
1Joe Smith, the owner, invested $ 130,000 cash, office equipment with a value of $ 2,300,and $ 5,400 of computer equipment to launch the business.
2Purchased land worth $ 85,000 for an office by paying $ 30,000 cash and signing a long-term note payable for $ 55,000.
4Purchased a portable building with $90,000 cash and moved it onto the land acquired on June 2.
4Completed and delivered a set of financial statements for a client and collected $ 12,000 cash.
6Paid $ 4,800 cash for the premium on a two-year insurance policy.
8Completed audit services for $ 31,000 on credit.
10Purchased $ 2,200 of additional computer equipment by paying $ 440 cash
and signing a long-term note payable for $ 1,760.
15Completed $ 25,000 of accounting services for a client. This amount is to be
received in 30 days.
20Purchased $ 2,850 of additional office equipment on credit.
20Received a bill for rent of equipment that was used on the June 8 audit.
The $ 400 rent cost must be paid within 30 days.
21Collected $ 12,500 cash in partial payment from the client described in
transaction on June 15.
22Paid $ 4,200 cash wages to an office assistant.
23Paid $ 2,850 cash to settle the account payable created in transaction on
June 20 .
24Paid $ 300 cash for minor repairs to its computer equipment.
30Paid $ 4,200 cash wages to an office assistant.
30Joe Smith withdrew $ 10,000 cash for personal use.
30Paid $ 1,750 cash for advertisements in the local newspaper during June .
Required
1.Prepare general journal entries to record these transactions (use account titles listed in part 2).