Latinovich Legal Services Had the Following Transactions During Its First

question 32

Essay

Latinovich Legal Services had the following transactions during its first month of operations:
May 1 Latinovich Legal Services received $20,000 cash and issued common stock to the stockholders.
May 1 Paid the May rent,$5,000.
May 3 Purchased equipment on account for $3,000.
May 5 Purchased supplies for $2,000 on account.
May 8 Performed services for a client and received cash of $11,800.
May 12 Performed services for a client and billed the client $12,200.The client promised to pay within 10 days.
May 15 Paid for the equipment purchased May 3 on account.
May 22 Received payment from a client on account,$12,200.
May 28 Borrowed $10,000,by signing a promissory note,from First National Bank for use in the business.
May 31 Employees were paid $3,000 for working during the current month.
May 31 Received and paid the utility bill of $1,800.
Required: Record the transactions of the business in a journal.Include an explanation for each entry.

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Definitions:

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at protecting trade and commerce against unlawful restraint and monopolies.

Fraudulent Advertising

The use of false, misleading, or unproven information to advertise products to consumers.

Federal Trade Commission

A United States federal agency established to prevent anticompetitive, deceptive, and unfair business practices.

Sherman Act

A foundational antitrust law in the United States, passed in 1890, aimed at prohibiting monopolistic business practices and ensuring competition.