Complete Supporting Calculations Acquired cash of $225,000 from the issue of common stock Borrowed $175,000 cash from the bank on April 1, 2018 Paid $285,000 cash to purchase fixed assets land that cost $65,000 and a building that cost $220,000 Earned and recognized consulting revenue on account for $345,000 Collected $200,000 on the accounts receivable during the year Incurred $150,000 of consulting expenses on account during the year Paid $125,000 on the accounts payable during the year Paid $92,500 cash for other operating expenses during the year Paid the company owners $5,300 of dividends Received $21,750 cash for services to be performed in the future On June 1, paid $10,500 cash in advance for a one year lease to rent office space Paid $9,450 cash for salaries expense Information for December 31, 2018 ADJUSTING ENTRIES Completed $11,350 of services performed described in Transaction 10 Adjust Prepaid Rent account for rent used up during the year (7 months) Use the straight line method to depreciate the building purchased in Transaction 3 Management estimated that it had a useful life of 20 years Record the building depreciation Recognized that $3,647 of Salary Expense has been incurred on December 31 The employees are owed this for the services they provided in December but will not be paid to them until January Record the year end accrual for salary expense Accrued interest expense for loan in 2 Terms interest rate 10 , in one year (Loan was outstanding 9 months during 2018) ACCT 205 Horizontal Model Spring 2019 Adjusting Entry Calculations Calculation of Rent expense Prepaid Rent date Financial Statement date 12 31 18 Prepaid Rent 12 Monthly Rent Monthly Rent x months Rent expense Number of months of rent used months Calculation of Depreciation expense Accumulated depreciation Building Cost at beginning of year Estimated Salvage value (no estimated salvage) Balance subject to depreciation Input Cost Balance Depreciation expense Balance Years to depreciate Annual Depreciation Expense per year Calculation of Interest Expense on Note Payable Note Payable date Financial Statement date 12 31 18 Principal x Interest Rate X months 12 months Number of months of interest incurred

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Complete Supporting Calculations Acquired cash of $225,000 from the issue of common stock. Borrowed $175,000 cash from the bank on April 1, 2018. Paid $285,000

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Complete Supporting Calculations

Acquired cash of $225,000 from the issue of common stock.
Borrowed $175,000 cash from the bank on April 1, 2018.
Paid $285,000 cash to purchase fixed assets - land that cost $65,000

and a building that cost $220,000.
Earned and recognized consulting revenue on account for $345,000
Collected $200,000 on the accounts receivable during the year
Incurred $150,000 of consulting expenses on account during the year.
Paid $125,000 on the accounts payable during the year.
Paid $92,500 cash for other operating expenses during the year.
Paid the company owners $5,300 of dividends.
Received $21,750 cash for services to be performed in the future.
On June 1, paid $10,500 cash in advance for a one-year lease to rent office space.
Paid $9,450 cash for salaries expense.

Information for December 31, 2018

ADJUSTING ENTRIES:

Completed $11,350 of services performed described in Transaction 10.
Adjust Prepaid Rent account for rent used up during the year. (7

months)
Use the straight-line method to depreciate the building purchased in

Transaction 3. Management estimated that it had a useful life of 20

years. Record the building depreciation.
Recognized that $3,647 of Salary Expense has been incurred on

December 31. The employees are owed this for the services they provided in December but will not be paid to them until January. Record the year end accrual for salary expense.
Accrued interest expense for loan in # 2. Terms: interest rate 10%, in one year. (Loan was outstanding 9 months during 2018).

ACCT 205 Horizontal Model - Spring 2019 Adjusting Entry Calculations Calculation of Rent expense: Prepaid Rent date Financial Statement date 12/31/18 Prepaid Rent/12 Monthly Rent Monthly Rent x # months : Rent expense Number of months of rent used-# months Calculation of Depreciation expense & Accumulated depreciation Building Cost at beginning of year Estimated Salvage value (no estimated salvage) Balance subject to depreciation Input Cost Balance Depreciation expense-Balance /Years to depreciate Annual Depreciation Expense per year Calculation of Interest Expense on Note Payable: Note Payable date Financial Statement date 12/31/18 Principal x Interest Rate X months/12 months Number of months of interest incurred