Date Account Titles and Explanations Debit Credit Jan. 01 Cash (13,000 shares * $19) $247,000 Commmon stock $65,000 Additional Paid-in capital in excess of par-common $182,000 Jan. 01 Cash (6700 shares $69) $462,300 Preferred stock 6700 shares * $30) $201,000 Additional Paid-in capital in excess of par-Preferred $261,300 Feb. 01 Equipment $220,000 Cash $20,000 Note payable $200,000 Mar. 15 Land $352,000 Common stock (20,000 shares * $2) $90,000 Additional Paid-in capital in excess of par-common $262,000 Mar. 31 Prepaid insurance $39,000 Cash $39,000 May. 01 Treasury stock $36,800 Cash (1,600 shares * $23) $36,800 May. 31 Cash $1,087,936 Bonds payable $1,000,000 Premium on bond payable $87,936 Dec. 01 Cash Dividend $37,814 cash Dividend payable-Preferred stock (10,700*30*3%) $9,630 cash Dividend payable-Common stock (56,368*$0.5) $28,184 Dec. 31 Dividend payable $37,814 Cash $37,814 Dec. 31 Note payable $1,500 Interest on note ($36000 x 7%]/4 $630 Cash $2,130 Dec. 31 Cash $500,000 Account receivable $1,475,000 Revenue $1,975,000 Dec. 31 Rent expense $170,000 Utilities expense $13,200 Salaries expense $760,000 Advertising expense $140,000 Medical insurance expense $32,000 Commision expense $63,000 Legal ann commission expense $18,000 Miscellaneous expense $8,400 Cash $1,204,600 Adjusting Jouranl entries as follows: Dec. 31 Salary $12,482 Employee accrued vacation pay $12,482 Dec. 31 Deperciation expense $23,220 Equipment [(220,000-11,020)/9] $23,220 Dec. 31 $39,000 Insurance expense Prepaid Insurance $39,000 Dec. 31 Interest Expenses $4,917 Premium on Bond payable ($5496 1/6] $916 Interest accrued ($1,000,000 x 7%