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Issued 1 0 , 0 0 0 additional shares of common stock for $ 6 0 , 0 0 0 cash on January 1 st
Issued additional shares of common stock for $ cash on January st
b Borrowed $ on March from Downtown Bank as a longterm loan. The interest rate
onthe loan is and Interest for the year is payable onJanuary
c Paid $ cash on April to lease a building for one year.
d Received $ on May from a tenant for one years rent.
e Paid $ on June for a oneyear insurance policy.
f Purchased $ of supplies for cash on June th
g Purchased inventory for $ on account on July
h August sold inventory for $ on account; cost of the merchandise sold was $
i Collected $ cash from customers accounts receivable on August th
j September Paid $ cash for inventories purchased earlier during the year.
k September th paid $ for sales reps salaries, including $ owed at the beginning of
l Dividends for $ were paid on October th
m The income taxes payable for the year of were paid on November th
n Foradjustingentries,allprepaid expensesareinitially recordedasassets,andallunearnedrevenues
are initially recorded as liabilities this is justinformational
o At yearend, $ worth of supplies are on hand.
p At yearend, an additional $ of sales salaries are owed, but have not yet been paid.
q Prepare an adjusting entry to recognize the taxes owed for The corporate tax rate is of the
income before income taxes.
Journalize and post any necessary adjusting entries at the end of Hint: Items b c d e o p and q require adjustment.
After the adjusting entries are posted, prepare an adjusted trial balance, an income statement, statement of retained earnings and a balance sheet for The format of your statements should mirror those prepared by the company in
Journalize and postclosing entries for and prepare a postclosing trial balance.
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