Brant on Banking began operations on January 1, 2015 Brant on had the following transactions in its first year of business January 4 Owners invested $ 400,000 (the par value of the stock) in exchange for 40,000 shares of common stock January 31 Brant on purchased an office building for $ 320,000 an...

a Date Account Titles Debit Credit 2015 January 4 Cash 400000 Common Stock 400000 January 31 Building 320000 Notes Payable 320000 February 1 Cash 6000 ...

Brant on Banking began operations on January 1, 2015. Brant on had the following transactions in its

Question:

Brant on Banking began operations on January 1, 2015. Brant on had the following transactions in its first year of business:

• January 4: Owners invested $ 400,000 (the of the stock) in exchange for 40,000 shares of common stock.

• January 31: Brant on purchased an office building for $ 320,000 and paid for the purchase with a note payable. Interest in the amount of $ 16,000 will be due annually on January 31 of each year, beginning in 2016.

• February 1: Brant on rented out a portion of its office building to another company. The renter signed a rental lease for the period of February 1, 2015 to January 31, 2016, and paid the annual rent amount of $ 60,000 upfront in cash.

• March 1: Brant on paid $ 12,000 cash for administrative expenses.

• March 28: Brant on purchased supplies in the amount of $ 42,000 on account with the supplier.

• April 8: Brant on purchased a one- year insurance policy that runs from May 1, 2015 to April 30, 2016, in the amount of $ 62,000 and paid in full for the policy in cash.

• May 1: Brant on recorded sales revenue in the amount of $ 240,000 that was received in cash from customers.

• July 6: Brant on paid employees $ 34,000 in wages in cash.

• September 30: Brant on recorded $ 320,000 in sales revenue. Of this amount, $ 200,000 was paid in cash and the remainder was on account.

• October 31: Brant on received a cash payment from a customer in the amount of $ 40,000 to be applied to its account balance related to the September 30 purchase.

• November 15: Brant on purchased supplies in the amount of $ 26,000 on account with the vendor.

• December 1: Brant on recorded sales revenue in the amount of $ 222,000, all on credit.

• December 22: Brant on received a legal bill for $ 14,000, which it will pay when due in February 2016.

Brant on records straight- line depreciation on buildings, using a 32 year life and a of zero. At year- end, wages for 2015 in the amount of $ 86,000 are due to employees and will be paid in January 2016. Supplies in the amount of $ 6,000 remain on hand on December 31.

Required
a. Prepare the journal entries for the transactions.

b. Show the accounting equation effect of each of these transactions.

c. Prepare any necessary year- end adjusting journal entries for these transactions.

d. Show the accounting equation effect of each of the adjusting journal entries.

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