Please prepare Journal entries and T accounts, Adjusting entries. Prepare I/S and Balance Sheet. prepare Closing Entries. Thank you!
Quiz Name Assume cash transaction in year XI unless otherwise noted. 1/1 An Investor acquired 100% of Crazy's stock with an investment of $400,000 cash. Par value of stock was 10.00/share and a thousand shares were sold V 1/1 Crazy borrowed $250,000 cash by issuing a 3-year note with a stated interest rate of 10% per year. To be compounded annually. The interest will be paid on January 1 of each year (starting next year); and the principal will be paid on maturity 1/3 Prepaid two years of rent for $24,000 (cash) for the current year. The first month's rent was due 1/1 for January 1/15 Purchased with cash - office equipment for $36,000 and supplies for $18,000 2/7 Received $150,000 cash for consulting, services to be performed in the future for client "X" 3/1 Started up a second line of consulting services. Sold and received $200,000 in total for the year in consulting services and paid related mise. expenses of $50,000. This summarizes all revenues and expense of business #2. All in cash. N 7/1 Prepaid $24,000 cash for a 12-month insurance policy (starting on 7/1) -8/1 Borrowed a $100,000 in cash from bank. Stated rate of interest is 10%. Principal and interest due 7/31/x2 9/12 Purchased $5,000 more of supplies on credit 9/16 Provided consulting services of $30,000 on credit to client "Y" from the main (first line) consulting service division. 10/1 Purchased $10,000 (with cash) of an investment in another company's (Pear Inc.) stock. Purchased $5,000 in bonds of Pear (not considered trading) 10/20 Collected $5,000 from client "Y". 10/21 )Delivered $150,000 for services delivered to Client "ZA" on account. 10/31 80% of the services for client X are performed. 12/1 Decided to sell second line of consulting business. Found a buyer for second line of consulting services. Sold the business in exchange for $40,000 worth of liabilities. equipment; which resulted in a gain of $40,000 as the second line had no assets or 12/15 Paid down the payable (supplies) with a $1,000 cash payment. We received $100,000 cash from Client "ZA". 12/31 Counted supplies and determined that $5,000 of supplies were still on hand 12/31 Total salaries paid in year equaled $35,000. Remaining salaries are to be paid on 1/3/x2. The total amount of current year expense is $45,000. The amount unpaid related to this amount at year-end is $10,000. 12/31 Determined appropriate total depreciation is $10,000 12731 ) Determined that the stock purchased on 10/1 was now worth $16,000. However, the stock was not sold. Determined the bonds were worth 12,000. 12/31 We declared and paid a dividend of $10,000 to our investor 12/31. We received cash of $2,000 in dividends from Pear Inc. We received $1,000 in interest from bonds. Tax Rate is 21% (none of the tax is paid, but it is accrued as a liability)1. Prepare JEs and Adjusting JEs (AJEs). Prepare Income Statement (including OCI) and a Balance Sheet in good form for 12/31/X1. Prepare closing entries
