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Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.
Lita Lopez invests $70,000 cash and office equipment valued at $10,000 in the company.
The company purchased a $150,000 building to use as an office. Biz Consulting paid $20,000 in cash and signed a note payable promising to pay the $130,000 balance over the next 10 years.
The company purchased office equipment for $15,000 cash.
The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
The company paid a local newspaper $500 cash for printing an announcement of the office’s opening.
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