Balance Sheet

Mr. Hill started a new business.

Prepare balance sheet entries for the following transactions.

Driving instructor James Hill established a private driving school.

1) On June 1, he invested 50 000 of his personal funds in the school.

2) On June 2, he paid 18 000 cash for a lot to be used for storing vehicles and for some driving instruction.

3) On June 3, Hill paid 600 to rent a furnished office for June and 4 000 to lease training vehicles. Both transactions were paid in cash.

4) On June 4, he paid cash for vehicle insurance premiums of 3 600 for three years.

5) On June 5, Hill purchased fuel and other supplies for 2 200. He didn‘t pay for it, the supplier gave him an invoice due in 25 days.

6) On June 26, students were billed 18 500 for June instruction fees. The fees were to be transferred to school‘s bank account.

7) On June 30, Hill paid instructors‘ salaries of 8 000 for June.

8) On June 30, the chool collected 14 000 on account from students billed in transaction 6).

9) On June 30, the school paid 1 200 on account for the fuel and supplies purchased in transaction 5).

10) On June 30, Hill paid 150 for office utilities (electricity and telephone).

11) On June 30, Hill withdrew 1 000 from the firm for personal use.

12) On June 30, 1/36 of the prepaid insurance has expired.

13) On June 30, supplies were counted, and only 550 worth of supplies remainded on hand.