Milestone Journal Entries Tab

1. Prepare accurate journal entries with the correct ledger accounts on the Milestone Journal Entries tab of the workbook. Be sure to refer to the Chart of Accounts tab for the account names when preparing journal entries. Include the following details in your response:
   1. Show calculations necessary to prepare the journal entries. Not all journal entries will require a calculation. Rows with an asterisk require formulas in the debit or credit column.
2. Prepare journal entries that are complete from the transactions listed in Project One Appendix on the Milestone Journal Entries tab of the workbook. There are a total of 12 entries.

The following events occurred during the first half of the year. Book the entries necessary for the corresponding transactions that have occurred.

January 22:Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for issuance of the bond.

February 28:A new long-term lease is entered into for extra storage space for the new product line of ink cartridges. The net present value of the future lease payments is $120,400. The lease is for two years at $5,000 per month beginning March 1.

March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an interest rate of 6% repayable at maturity.

April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation assuming a 4-year life, with no residual value. Use full years depreciation for the first year.

April 17: 200 shares of common stock with a $1 par value were sold for $20 per share.

May 5: Paid cash dividends to stockholders of $22,500.

June 22: Purchased 50 shares of the companys stock at $25 per share.

June 30:Book the depreciation for the first half of the year on the printer equipment purchased April 22.

June 30:Book the interest for the first half of the year on the loan you took out on March 6.

June 30: Book the interest payment and amortization on discount for bond.

June 30: Paid the rent expense for the first half of the year in cash.

June 30: Book the service revenue of $100,000 for the first half of the year paid in cash.