RECORDING CHANGES IN FINANCIAL POSITION

DEMONSTRATION PROBLEM

Stadium parking was organized on July 1 to operate a parking lot near a new sports arena. The following
transactions occurred during July prior to the company beginning its regular business operations.

July 1. Sylvia Snyder opened a bank account in the name of the business with a deposit of $ 45000
cash.

July 2. Purchased land to be used as the parking lot for a total price of $ 140000. A cash down payment
of $ 28000 was made and a note payable was issued for the balance of the purchase price.

July 5. Purchased a small portable building for $ 4000 cash. The purchase price included installation of
the building on the parking lot.

July 12. Purchased office equipment on credit from Suzuki & Company for $ 3000.

July 28. Paid $ 2000 of the amount owed to Suzuki & Company.

The accounting titles and account numbers used by Stadium parking to record these
transactions are as follows;

Cash 1 Notes payable 30

Land 20 Accounts payable 32

Building 22 Sylvia Snyder, capital 50

Office equipment 25

a. Prepare journal entries for the month of July.

b. Post to ledger accounts
c. Prepare a trial balance at July 31.