answer all
19. Peter Jones organized a corporation to provide transportation services. The company. 16., began operations immediately. Transactions during the month of March were as 40,000 shares of capital stock to Peter Jones in exchange for ade a $12,000 cash down payment and issued a note Problem 1 (17 points) In March 2019, Peter Jones organized a corpora called Jones Inc., began operations immediately. Tran follows. Mar. 2 The corporation issued 40,000 shares of capital stock to Peter $60,000 cash. Mar. 4 Purchased a truck for $35,000. Made a $12,000 cash down payment and payable for the remaining balance. Mar. 5 Paid $1,750 to rent office space for the month. Mar. 19 Paid $880 for maintenance and repair services on the company truck. Mar. 28 Billed customers $22,300 for services performed. Mar. 29 Paid $17,630 in salaries earned by employees during the month. Mar. 30 Received an $760 bill for fuel used in March. The entire amount is due by April 15. Mar. 31 Declared a $900 dividend that will be paid on April 30. The account titles used by Music Inc. are as follows: Accounts Receivable Cash Rent expense Fuel Expense Service Revenue Capital Stock Accounts Payable Maintenance Expense Truck Dividends Payable Dividends Notes Payable Salaries Expense Instructions: Record the journal entries for the above transactions Date Account Titles and Explanation Debit Credit Problem 2 (39 points) James Harris Enterprises is a small recording studio in Nashville. Rock bands use the studio to produce recordings to distribute to talent agents. New clients are required to pay in advance for services, while bands with good credit rating are billed at the end of the month. Adjusting entries are performed on a monthly basis but performs closing entries annually on December 31. An unadjusted trial balance dated December 31, 2015, is provided below. (Bear in mind that adjusting entries already have been made for the first eleven months of 2015, but not for December.) Data for adjustments: 0 1. Billed clients $10,225 in studio revenue for December. 2. Studio supplies used during December amount to $9,200. 3. On July 1, 2015, the studio purchased a six-month insurance policy for $3,000. The entire premium was initially debited to Unexpired Insurance. 4. On November 1, 2015, the studio paid 5 months of rent in advance for $5,000. The entire amount was debited to Prepaid Studio Rent 5. The useful life of the studio's recording equipment is estimated to be 6 years (or 72 months). The straight-line method of depreciation is used. 6. On August 1, 2015, the studio borrowed $16,000 by signing a 12-month, 6 percent note payable to Bank of America. The entire $16,000 plus 12 months' interest is due in full on July 31, 2016. 7. Records show that $4,800 of cash receipts originally recorded as Uneamed Studio Revenue had been earned as of December 31. 5. Salaries eamed by studio employees that remain unrecorded and unpaid at December 31 amount to $1,500. Jame Harris Enterprises Unadjusted Trial Balance December 31, 2015 $ 43,170 81,400 7,600 500 Cash........ Accounts receivable... Studio supplies..... Unexpired insurance. ........ Prepaid studio rent ................... Recording equipment... Accumulated depreciation: recording equipment.... Notes payable..... Interest payable ...................... Income taxes payable............... Unearned studio revenue....................... Capital stock. . . . . . . . . . ... Retained earnings............... Studio revenue earned........ Salaries expense ............... Supplies expense......... Insurance expense....... Depreciation expense: recording equipment ...... Studio rent expense..... Interest expense............. Utilities expense............. Income taxes expense ......... 4,000 90,000 $ 52,500 16,000 840 3,200 9,600 80,000 38,000 no 107,000 18,000 1,200 2,680 16,500 21,000 840 2,350 17,900 $307,140 $307,140 structions: 1) Record the adjusting entries required at December 31, 2015 in General Journal provided below. You may omit explanations. Date Account Titles and Explanation Debit Credit 2) Post the entries on the appropriate general ledger accounts. Using the unadjusted trial balance, calculate and show the ending balance for each T-account. 7,500 1,800 Salaries Expense Utilities Expense Rent Expense Depreciation Expense Income Taxes Expense 1,950 650 660 $45,540 $45.540 Instructions: Using Adjusted Trial Balance above: (1) Prepare the necessary year-end closing entries Date Account Titles and Explanation Debit Credit (2) Prepare an Income Statement for the year ended December 31, 2018 (3) Prepare a Statement of Retained Earnings for the year ended December 31, 2018 (4) Prepare a Balance Sheet dated December 31, 2018 (5) Does the company appear to be liquid? Explain. (6) Has the company been profitable in the past? Explain. 7,500 1,800 Salaries Expense Utilities Expense Rent Expense Depreciation Expense Income Taxes Expense 1,950 650 660 $45,540 $45.540 Instructions: Using Adjusted Trial Balance above: (1) Prepare the necessary year-end closing entries Date Account Titles and Explanation Debit Credit (2) Prepare an Income Statement for the year ended December 31, 2018 (3) Prepare a Statement of Retained Earnings for the year ended December 31, 2018 (4) Prepare a Balance Sheet dated December 31, 2018 (5) Does the company appear to be liquid? Explain. (6) Has the company been profitable in the past? Explain