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Part A: Journalize the following transactions for January for Psych, Inc. Shawn and Gus opened Psych, Inc., a pyschic detective agency, on January 1, 2022.
Part A: Journalize the following transactions for January for Psych, Inc. | |||||||||||
Shawn and Gus opened Psych, Inc., a pyschic detective agency, on January 1, 2022. | |||||||||||
They are the only owners of the corporation. | |||||||||||
During January, Psych, Inc. completed the following transactions. | |||||||||||
1-Jan | Cashed a check for $35,000 for a business loan from Shawn's dad. | ||||||||||
His dad will charge Psych, Inc. 6% APR, and the loan will be due in 2 years. | |||||||||||
The first payment will be due on February 1, 2022. | |||||||||||
1-Jan | Shawn invested $1,000 in exchange for common stock in Pysch, Inc. | ||||||||||
1-Jan | Gus invested $10,000 in exchange for common stock in Pysch, Inc. | ||||||||||
1-Jan | Prepaid $12,000 for 1 year of rent for office space. | ||||||||||
1-Jan | Bought an office computer for $1,500 cash. | ||||||||||
1-Jan | Hired a secretary who will be paid $800 a month. She will begin working on January 4. | ||||||||||
3-Jan | Bought office supplies for $750 on account. | ||||||||||
4-Jan | Performed services and billed the Santa Barbara Police Department for services performed for $2,000. | ||||||||||
11-Jan | Received payment in full for services billed to the Santa Barbara Police Department on Jan 4. | ||||||||||
14-Jan | Performed services and billed a private client, Swanson, for $1,000. | ||||||||||
15-Jan | Incurred $1,000 for 2 weeks of wages expense for the secretary. These wages will be paid on Jan 20. | ||||||||||
17-Jan | Paid for the office supplies purchased on Jan 3. | ||||||||||
21-Jan | Paid wages incurred on Jan 15. | ||||||||||
25-Jan | Performed services and billed the Santa Barbara Police Department for $3,000. | ||||||||||
29-Jan | Received payment in full from private client Swanson billed on Jan 14. | ||||||||||
30-Jan | Paid phone bill with $75 cash. | ||||||||||
30-Jan | Paid utilities with $68 cash. | ||||||||||
30-Jan | Incurred 1 month of interest on the loan from Shawn's dad totalling $175. | ||||||||||
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