HoloTech Displays

Prepare journal entries for the year ending December $31,202.$

Listed below are the accounts and their respective balances for HoloTech Displays at December $31,20$X$1.$

During $20$X$2$ the following transactions occurred:

Paid prior year's accounts payable.

Received prior year's accounts receivable.

Purchased $10$ holographic projection systems for $$30,000$ each $($paid $20\%$ down and will pay the rest later$)$

Sold $8$ holographic projection systems for $$55,000$ each $($received $50\%$ in cash, the rest will be received later$)$

Wrote off $$300$ of uncollectible accounts receivable.

Paid $20$X$1$ taxes payable.

Paid cash for wages of $$40,000.($check last year's balance $)$

Paid ten months rent, $$10,000.$ Rented the space the entire year. $($check last year's balance$)$

Paid $$3,500$ for utilities.

Sold $15$ shares of common stock for $$250$ each on September $30,20$X$2$

On Dec $31,$ paid annual payment on note payable of $$15,000$ principal plus $$750$ interest

Paid a $$4,500$ dividend to shareholders on Dec. $31$

Also, during the year the company paid $50\%$ of the $202$ taxes. They will pay the rest next year.

The tax rate is $30\%.$

The company uses the FIFO inventory system.

At Dec $31,202$ the company estimates that $3\%$ of the Accounts Receivable will not be collectible.

At Dec $31,20$X$2$ the company owed $$12,000$ in wages which have not yet been paid.

The equipment originally cost $$150,000,$ had a ten$-$year life and was expected to be worth $$25,000$

at the end.