1. April 1 Issue 1,000 shares of $1 par value common stock for $5,000. 2 April 1 Buy equipment with a note for $40,000. The note and 10% interest is due in 3 years. . April 4 Sell inventory that cost $15,000 for $20,000. 4 April 10 Provide services to customers on account for $9,000. - April 15 Purchase $17,000 supplies for cash a April 20 Pay employees $2,300 for the first half of the month. 7. April 22 Provide services to customers for $11,000 cash. * April 24 Pay $1,300 owed on account - April 25 Collect $700 for work that will begin later in the year. 10. April 26 Collect $7,100 due on account from customers. 11. April 28 Pay $12,000 for one year's rent in advance. 12. April 29 Sell inventory that cost $7,000 for $12,000 on account. 13. April 30 Sold a building that cost $100,000 with accumulated depreciation of $25,000 for $90,000 cash. Adjusting Entries 12/31 1) Record depreciation on the $40,000 equipment. Using the activity-based method, it is expected to last 80,000 hours with $0 salvage value. It was used for 17,000 hours this year. 2) Record the accrued interest on the April 1$40,00010% note. 3) Record the entry for supplies used. There are $2,000 of supplies remaining. 4) The $700 of work paid for on April 25 was completed in December. 5) Employees earned $3,000 that will be paid in January. 6) Record the rent used since it was prepaid at the end of April. 1. April 1 Issue 1,000 shares of $1 par value common stock for $5,000. 2 April 1 Buy equipment with a note for $40,000. The note and 10% interest is due in 3 years. . April 4 Sell inventory that cost $15,000 for $20,000. 4 April 10 Provide services to customers on account for $9,000. - April 15 Purchase $17,000 supplies for cash a April 20 Pay employees $2,300 for the first half of the month. 7. April 22 Provide services to customers for $11,000 cash. * April 24 Pay $1,300 owed on account - April 25 Collect $700 for work that will begin later in the year. 10. April 26 Collect $7,100 due on account from customers. 11. April 28 Pay $12,000 for one year's rent in advance. 12. April 29 Sell inventory that cost $7,000 for $12,000 on account. 13. April 30 Sold a building that cost $100,000 with accumulated depreciation of $25,000 for $90,000 cash. Adjusting Entries 12/31 1) Record depreciation on the $40,000 equipment. Using the activity-based method, it is expected to last 80,000 hours with $0 salvage value. It was used for 17,000 hours this year. 2) Record the accrued interest on the April 1$40,00010% note. 3) Record the entry for supplies used. There are $2,000 of supplies remaining. 4) The $700 of work paid for on April 25 was completed in December. 5) Employees earned $3,000 that will be paid in January. 6) Record the rent used since it was prepaid at the end of April