Learning Objectives:

Analyze the impact of business transactions on accounts; construct and use a trial balance.

During the first month of operations (March 2014), Lone Star Entertainment Corporation completed the following selected transactions:

a. The business received cash of $38,000 and a building with a fair value of $110,000. The corporation issued common stock to the stockholders.

b. Borrowed $50,000 from the bank; signed a note payable.

c. Paid $45,500 for music equipment.

d. Purchased supplies on account, $1,900.

e. Paid employees' salaries, $4,200.

f. Received $4,600 for music service performed for customers.

g. Performed service for customers on account, $3,600.

h. Paid $400 of the account payable created in transaction d.

i. Received a $900 bill for utilities expense that will be paid in the near future.

j. Received cash on account, $1,200.

k. Paid the following cash expenses: (1) rent-$1,800; (2) advertising-$950.