Question
Nov. 1 Issued 10,000 shares of $10 par value common stock in exchange for an initial investment of $100,000 by the firm's owners Nov. 1
Nov. 1 Issued 10,000 shares of $10 par value common stock in exchange for an initial investment of $100,000 by the firm's owners Nov. 1 Prepaid $1,800 for a one-year insurace policy Nov. 3 Issued 1,500 shares of $10 par value common stock for office equipment with a fair market value of $15,000. (The Office Equipment will be depreciated on a straight line basis over 10 years with a $3,000 residual value).
Nov. 4 Borrowed 20,000 by issuing a four-year 6% notes payable. The note called for a $5,000 annual installment payments plus interest. Record the short-term and long-term portions of the note payable in two separate accounts.
Nov. 5 Purchased Land and a Building for $90,000 cash. The Building had a fair market value of $80,000 and the Land had a fair market value of $10,000. (The Building will be depreciated on a straight line basis over 20 years with an $8,000 residual value.)
Nov. 6 Purchased $10,000 worth of Office Supplies on account from Kilcoyne Office Supply.
Nov. 7 Established a petty cash fund of $400
Nov. 8 Paid $2,400 cash for an order with a local newspaper for advertising that begins on November 15 and will run for three months. The advertising was paid for on this date to obtain a lower price.
Nov. 11 Completed services for several clients and received $10,000
Nov. 12 Completed services for customers and billed them for $12,000
Nov. 15 Paid the semi-montly payroll of $8,000 to the firm's part time consultants, all of which are classified as independent contractors.
Nov. 16 Received $9,000 in advance for services to be provided from November 16 through February 15. (Three months)
Nov. 16 A client billed on November 12 indicated that a $2,000 receivable due Bayou Computer Services Enterprises would not be paid for 90 days. Bayou Computer Services accepted a 12% 90 Day notes receivable on this date.
Nov. 17 Declared a cash divident of %.50 per share on this date Payable on December 16.
Nov. 18 Paid cash to Kilcoyne Office Supply $2,500, on the November 06 account balance.
Nov. 29 Received and paid the November telephone bill of $500.
Nov. 30 Collected $3,000 of the receivable recorded on November 14.
Nov. 30 Paid cash, $1,500, for various utility bills received for November.
Nov. 30 Recorded services rendered to clients during the lat half of November that totaled $20,000. The firm collected $15,000 in cash with the balance due in 30 days.
Nov. 30 Record the entry to replenish the petty cash fund. An audit of the petty cash fudn determined the following:
Petty cash tickets:
Postage $50
Freight-Out $150
Repair Expense $60
Miscellaneous Expense $85
Currency and Coins in Petty Cash $40
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