Dec. 1

Issued 20,000 shares of capital stock to Paula Petersen and other investors in exchange for a

total of $40,000 cash.

Dec. 1

Paid $9,600 to Mages Realty for 12 months rent paid in advance. (Use the Asset account:

Prepaid Rent for the entire amount).

Dec. 2

Purchased plumbing repair equipment and tools from Host Corp. for $15,000 (use the account

Plumbing Equipment). Paid $5,000 in cash with the balance due on a Note Payable (principal and

interest due in 6 months).

Dec. 4

Purchased office supplies on Account from Clousers for $1,000. Payment is due in 15 days.

These supplies are expected to last for several months.

Dec. 5

Purchased a 6 month business Insurance Policy for $1,200 from the Seyler Agency (use the

Asset account Unexpired Insurance for the entire amount).

Dec. 10 Received $4,000 cash from the Wink Apartment Complex in Exeter Township as advance

payment for services to be provided. (Use the Liability account: Unearned Plumbing Fees.)

Dec. 16 Paid employee salaries for the first two weeks of December, $2,000.

Dec. 16 Earned $7,500 in fees for plumbing repairs completed in the first two weeks of December.

$3,000 was received in cash and the remainder was billed to PPIs customers on Account (due in 10

days.)

Dec. 19 Paid the amount due to Clousers on account from the Dec. 4

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purchase.

Dec. 26 Received amount due on account from the December 16

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billing.

Dec. 27 PPI was named, along with Mages Agency, as a co-defendant in a $15,000 lawsuit filed on

behalf of Joseph Walker. Walker slipped on ice outside of the shop and broke his leg. The extent of the

Corporations legal and financial responsibility, if any, can not be determined at this time. (Note: this

event does not need a journal entry at this time, but may require disclosure in the notes accompanying the

financial statements,

Dec. 30 Received a phone bill for the month of December from Sprint in the amount of $300. The

amount is due on January 15, 2015.

Dec. 30 Declared a cash dividend of $.05 (5 cents) per share, payable on January 15, 2015.

Dec. 31 Earned $9,000 in fees for plumbing repairs provided for the second two weeks of December.

$4,000 was received in cash and the remainder was billed to PPIs customers on Account (due in 12

days.)

I need help with the journal entries!