Below are the transactions for Broncho Computer Solutions, Inc. for the month of June 2021. This is the company’s first month of operation. Its owner is a retired University of Central Oklahoma professor who wants to launch a career as an Internet service provider: a. June 1--Invested $20,000 cash and a building valued at $60,000 to start Broncho Computer Solutions, Inc. The business issued 20,000 shares of no-par common stock in exchange for these assets. b. June 3--Borrowed $70,000 from Last National Bank. The loan is due in 1 year and has an interest rate of 14%. c. June 4--Purchased computer equipment from Alpha Byte Systems for $25,000 cash. d. June 4—Purchased office furniture from Staples for $8,000 cash. e. June 5--Purchased a minivan from Danny Stewart Motors for $28,000 cash. f. June 5--The Corporation purchased a nine-month insurance policy for $6,300 and charged the amount to an asset account. g. June 7--Performed computer services for City Hospital and received $8,400 cash. h. June 8--Completed a $10,000 computer security job and billed Statesville College for the amount due. i. June 15--Paid employee salaries of $4,300. j. June 16--Received $5,600 from Lady GaGa for website setup. k. June 17--Received $72,000 from Where’s My Family (a genealogy organization) for an annual website contract. The amount was charged to a revenue account. l. June 18--Received a check from Statesville College for the full amount due. m. June 19--Received a bill from Edmond Telephone Company for $925. n. June 19--Received an electric bill from Edmond Light and Power for $1,850. o. June 20--Purchased fuel for the minivan on credit for $290. p. June 21--Purchased office supplies from Staples for $1,800 cash and recorded them in an inventory account. q. June 22--Paid the telephone bill and the electric bill. r. June 25--Paid $105 to Slow-Joe Lube Company for auto service. s. June 27--Received cash of $6,200 for several internet jobs. t. June 28--Paid a cash dividend to the owner of $2,000. u. June 28—Paid AllTel $2,500 for monthly service fees. Journalize each of the above transactions in the general journal.
Below are the transactions for Broncho Computer Solutions, Inc. for the month of June 2021.
This is the company’s first month of operation. Its owner is a retired University of Central
Oklahoma professor who wants to launch a career as an Internet service provider:
a. June 1--Invested $20,000 cash and a building valued at $60,000 to start Broncho
Computer Solutions, Inc. The business issued 20,000 shares of no-par common stock in
exchange for these assets.
b. June 3--Borrowed $70,000 from Last National Bank. The loan is due in 1 year and has an
interest rate of 14%.
c. June 4--Purchased computer equipment from Alpha Byte Systems for $25,000 cash.
d. June 4—Purchased office furniture from Staples for $8,000 cash.
e. June 5--Purchased a minivan from Danny Stewart Motors for $28,000 cash.
f. June 5--The Corporation purchased a nine-month insurance policy for $6,300 and
charged the amount to an asset account.
g. June 7--Performed computer services for City Hospital and received $8,400 cash.
h. June 8--Completed a $10,000 computer security job and billed Statesville College for the
amount due.
i. June 15--Paid employee salaries of $4,300.
j. June 16--Received $5,600 from Lady GaGa for website setup.
k. June 17--Received $72,000 from Where’s My Family (a genealogy organization) for an
annual website contract. The amount was charged to a revenue account.
l. June 18--Received a check from Statesville College for the full amount due.
m. June 19--Received a bill from Edmond Telephone Company for $925.
n. June 19--Received an electric bill from Edmond Light and Power for $1,850.
o. June 20--Purchased fuel for the minivan on credit for $290.
p. June 21--Purchased office supplies from Staples for $1,800 cash and recorded them in an
inventory account.
q. June 22--Paid the telephone bill and the electric bill.
r. June 25--Paid $105 to Slow-Joe Lube Company for auto service.
s. June 27--Received cash of $6,200 for several internet jobs.
t. June 28--Paid a cash dividend to the owner of $2,000.
u. June 28—Paid AllTel $2,500 for monthly service fees.
Journalize each of the above transactions in the general journal.
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