ACCT 215 (CT) Accounting Cycle Problem The John Marshall Company, Inc., which provides consulting services to major utility companies, was formed on January 2 of this year. Transactions completed during the first year of operation were as follows: January 2-Issued 600,000 shares of stock for $10,500,000. January 10-Acquired equipment in exchange for $2,500,000 cash and a $5,000,000 note payable. The note is due in ten years. February 1-Paid $12,000 for a business insurance policy covering the two-year period beginning on February 1. February 22 Purchased $950,000 of supplies on account March 1-Paid wages of $185,600 March 23 - Billed $2,820,000 for services rendered on account April 1-Paid $110,000 of the amount due on the supplies purchased February 22. April 17-Collected $240,000 of the accounts receivable May 1-Paid wages of $200,400. May 8-Received and paid bill for $96,000 for utilities. May 24-Paid $43,000 for sales commissions. June 1 - Made the first payment of 250,000 on the note issued January 10. The payment consisted of $50,000 interest and $200,000 applied against the principal of the note. June 16 - Billed customers for $550,000 of services rendered. June 30 Collected $320,000 on accounts receivable. July 10 Purchased $150,000 of supplies on account. August 25 - Paid $155,000 for administrative expenses. September 23-Paid $31,000 for warehouse repairs. October 1-Paid general wages of $91,000. November 20-Purchased supplies for $62,000 cash. December 15 - Collected $145,000 in advance for services to be provided in December and January.