Prepare the journal entries. Post the journal entries to the T accounts. Prepare
ID: 2609572 • Letter: P
Question
Prepare the journal entries. Post the journal entries to the T accounts. Prepare the adjusting entries. Post the adjusting entries to the T accounts. Prepare an adjusted trial balance. Prepare closing entries and financial statements. Accounting 3210: Demonstration Problem January 26, 2018 Name Section Time: the following any began its operations on January 1, 2015. During itsfist year, the company engaged in 1. Issued common stock for $10,000 cash. 2. Borro wed $4,000 cash from a local bank. The note matures in two years. 3. Purchased $500 of supplies on account. 4. Recognized revenue of $8,000 for services provided on 5. Paid $3,900 cash for salaries expense. 6. Paid $2,400 cash in advance for a one-year lease to rent 7. Purchased $3,500 of office furniture on account. 8. Received $1,800 cash for services to be performed in the future. 9. Collected $3,000 cash from accounts receivable. 10. Paid $1,200 cash for utilities. 11. Paid dividends of $1,000 cash to the stockholders. 12. Invested $2,000 cash in a two-year certificate of deposit. 13. Repaid $1,600 principal on the bank loan described in Event No. 2 14. Purchased land for $2,700 cash. account. office space Adjusting Entries: 15. Recognized $400 of accrued interest expense on the bank loan described in Event No. 2 16. The contract described in Event No.8 was initiated on September 1. It is a nine month service contract. Record the appropriate adjusting entry. 17. Counted supplies on hand at December 31. Determined the company had $100 of supplies remaining. 18. Recognized accrued salary expense of $300. 19. Recognized accrued interest revenue on the CD purchased in Event No. 12. The CD was purchased on July 1st and has a 5% interest rate. 20. Recognized depreciation expense on the office furniture purchased in Event No. 7. The office furniture was purchased on January 1". It has a ten-year life and no salvage value. The company uses straight-line depreciation. 1. Recognized rent expense for the lease in Event No. 6. The lease agreement began on OctoExplanation / Answer
1. Cash A/c Dr 10000
Common Stock Cr. 10000
2. Cash A/c Dr. 4000
Loan A/c Cr. 4000
3. Purchases A/c Dr. 500
Supplier A/c Cr. 500
4. Debtor A/c Dr. 8000
Sales A/c Cr. 8000
5. Salaries A/c Dr. 3900
Cash A/c Cr. 3900
6. Advance Lease Rental A/c Dr. 2400
Cash A/c Cr. 2400
7. Office Furniture A/c Dr. 3500
Cash A/c Cr. 3500
8. Cash A/c Dr. 1800
Unaccrued Income Cr 1800
9. Cash A/c Dr. 3000
Debtors A/c Cr. 3000
10. Utilities A/c Dr. 1200
Cash A/c Cr. 1200
11. Dividend A/c Dr. 1000
Cash A/c Cr. 1000
12. COD A/c Dr. 2000
Cash A/c Cr. 2000
13. Loan A/c Dr. 1200
Cash A/c Cr. 1200
14. Land A/c Dr. 2700
Cash A/c Cr. 2700
15.Interest A/c Dr. 400
Outstanding Interest A/c Cr. 400
16. Sales A/c Dr. 1000
Unaccrued Income A/c Cr. 1000
18. Salary A/c Dr. 300
Outstanding Salary A/c Cr. 300
19. COD A/c Dr. 50
Accrued Interest A/c Cr. 50
20. Depriciation A/c Dr. 35
Furniture A/c Cr. 35