Question

Mathew and David started a Company “MD Housing, Inc.”. They Provide Rental Housing Services. They prepare

their financials on a monthly basis.
1/1 – Mathew Contributed $10,000 in exchange for company stock in MD Housing Inc.

1/2 – David contributed $6,000 of Equipment and $4,000 in cash in exchange for company stock in MD Housing Inc.

1/3 - MD Housing paid $1,800 for a 1 year insurance policy from Farmers Insurance. The policy effective start date is 1/1/X1.

1/4 – MD Housing went to Lowes and Purchased $18,000 worth of Equipment. They had to put 10% cash down and financed the remainder of the purchase price with a 5 year Note.

1/5 – MD Housing purchases $1,500 of supplies on account from Amazon.com

1/6 – MD Housing pays $2,000 for Office Rent.

1/7 – MD Housing provides services to Client #1. They pay MD Housing $3,300 in cash

1/8 – MD Housing received $36,000 from Client #2 for 12 months of housing that has an effective start date of 1/1/X1.

1/9 – MD Housing pays $650 towards the balance they owe to Amazon.com 1/10 – MD Housing pays $750 to Advertise in Black Brand Publication.
1/11 – MD Housing pays GG Property Solutions $1500 for repair services.

1/12 – David and Mathew each receive $500 dividend from MD Housing ($1,000 total). David and Mathew will use these funds for their personal use.

Answer 1