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Post Journal entries and Adjusting entries: 1) 1/1/2014. an investor acquired 100% of Crazy's stock with an investment of $200,000 cash. Par value of stock
Post Journal entries and Adjusting entries:
1) 1/1/2014. an investor acquired 100% of Crazy's stock with an investment of $200,000 cash. Par value of stock was 100.00/share and a thousand shares were sold.
2)1/1/2014. Crazy borrowed $250,000 cash by issuing a 3-year note with a stated interest rate of 12% per year. To be compounded semi-annually. The interest will be paid on January 1 of each year; and the principle will be paid on the maturity date.
3)1/3/2014. Prepaid a year's rent for $24,000(cash) for the current year. The first month's rent was due 1/1 for January.
4)1/15/2014. Purchased with cash - office equipment for $36,000 and supplies for 12,000.
5)2/7/2014. Received $150,000 cash for consulting, services to be performed in the future for client X.
---5A)12/31/2014. Determined that there is still about $10,000 to do for client X.
6)3/1/2014. Started up a second line of consulting services, which will be discontinued later. Sold services(delivered) and received $200,000 in cash in consulting services and paid related misc. expenses of $50,000.
7)7/1/2014prepaid $36,000 cash for a 12-month insurance policy (starting on 7/1)
8)purchased $10,000 more of supplies on credit.
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