P-1. Business activities for the Hartman Company for December 2019 are presented below. Hartman

1. Issued common stocks for $550,000 in cash.

2. Purchased land at $150,000 in cash.

3. Purchased equipment at $50,000, for which $15,000 were paid in cash and the remainder on credit.

4. Purchased supplies for $1,800 in cash.

5. Paid off what Hartman owes for the purchase of equipment in transaction 3.

6. Paid wages to employees for $4,500.

7. Hired an administrative assistant at an annual salary of $40,000.

8. Purchased inventory costing $120,000, for which $70,000 were paid in cash and the remainder on credit.

9. Paid off what Hartman owes for the purchase of inventory in transaction 8 .

10. Sold inventory costing $24,000 for $40,000 on credit.

12. Received the full payment for the transaction 11 in cash before the expiration of cash

discount term period.

13. Paid dividends to stockholders of $500.

Instructions: prepare any necessary journal entries for each activity above and identify each activity by number. You may omit journal explanations.

P-2. Prepare any necessary journal entries for the following three transactions and adjusting entries for respective transactions on October 31.

1. Sierra Corporation purchased supplies costing $2,000 on October 5. Sierra recorded the purchase by increasing (debiting) the asset Supplies. An inventory count at the close of business on October 31 reveals that $800 of supplies is still on hand.

2. On October 1, Sierra Corporation paid $1,200 for a one-year fire insurance policy. Coverage began on October 1. Sierra recorded the payment by increasing (debiting) Prepaid Insurance.

3. Sierra Corporation received $1,500 on October 2 from R. Knox for guide services for multi-day trips expected to be completed by December 31. From an evaluation of the service Sierra performed for Knox during October, the company determines that it has earned $500 in October.