1 4/9/2022 2 4/11/2022 3 4/11/2022 4 4/11/2022 5 4/13/2022 Orca Company sold common stock for $100,000 in cash. Please record the necessary March adjusting entries: -Interest for both of the note payables - Prepaid Insurance for March has been used - Prepaid Rent for March has been used - Orca Company estimates bad debt as 8% of current A/R - Orca Company used 1/2 of the remaining supplies - $30,000 of salaries is recorded, but not paid -Utilities of $1,900 are paid Orca Company sold 150 units of inventory on account for $100 per unit -- Recall you are using FIFO. Orca Company has 70 units of $50 inventory remaining (from March 4th) and 500 units of $65 inventory (from March 21st) Orca Company pays an appraiser to assess useful life and salvage value for its building and equipment, which are going to begin being depreciated. The following is noted: - Incurs "appraisal expense" of $500 which is paid in cash and is NOT capitalized. -The Building with book value of $495,000 has a salvage value of $45,000 and useful life of 25 years. -The Equipment with book value of $3,000 has $0 of salvage value and 6-year useful life Record depreciation expense and accumulated depreciation for 2 months for the building (February/March) and 3 months for the Equipment (Jan-March). Orca Company released a new advertising campaign worth $10,000 with its new slogan "Wonderful are the Waves". Orca Company paid legal and registration costs of $18,000 for trademarking the phrase. 6 4/13/2022 Orca Company purchased 200 units of inventory for $55 per unit. 7 4/13/2022 Orca Company decides to sell its building. The purchaser agrees to take on Orca Company's note owed on the building and pay an additional $20,000. 8 4/15/2022 Orca Company sells 100 units of inventory for $100 on account 9 4/15/2022 A customer pays orca company $15,000 for services to be provided later. 10 4/15/2022 11 4/18/2022 12 12 4/18/2022 A customer recently sued Orca Company. Orca Company hired a law firm for $1,000 and the firm told Orca Company that a $10,000 loss is probable. Record the contingent liability Orca Company leases a new piece of equipment. The payments on the lease are paid annually and are $500 for 6 years with a borrowing rate of 5% and all payments are made at the end of April, starting this year. Orca Company issues a bond of face value $15,000. Orca Company will pay 4% annual interest on the bond. 13 4/18/2022 Orca Company provides services of $40,000 to a customer and is paid in cash.