Prepare JEs and Adjusting JEs. Prepare Income Statement (including OCI) and a Balance Sheet in good form for 12/31/X1.

1/1 An Investor acquired 100% of Crazys stock with an investment of $1,900,000 cash. Par value of stock was 9.00/share and ten thousand shares were issued

1/3 Prepaid rent for $144,000 for the next 18 months; starting this January.

1/15 Purchased with cash - office equipment for $120,000 and supplies for $50,000

2/7 Received $650,000 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 cash of $200,000 in total for the year in consulting services; and paid related misc. expenses (cash) of $250,000. No other income was generated from second business.

8/1 Prepaid $96,000 for a 12-month insurance policy (starting on 8/1), Crazy borrowed $350,000 cash by issuing a 3-year note with a stated interest rate of 9% per year. To be compounded annually. The interest will be paid on January 1 of each subsequent year; and the principal will be paid on the maturity date

9/12 Purchased $30,000 more of supplies on credit

9/16 Provided consulting services of $660,000 on credit to client Y.

10/1 Purchased $20,000 of an investment in another companys (Pear Inc.) bonds.

10/20 Collected $520,000 from client Y. Received $350,000 in cash for future services to Client ZA from the main business.

11/1 Issued three thousand shares of our common stock for $300,000 cash.

12/1 Found a buyer for second line of consulting services. Sold the business in exchange for $20,000 cash; which resulted in a gain of $20,000

12/15 Paid down the payable (supplies) with a $25,000 cash payment. Performed services equal to $300,000 for Client ZA

12/31 Counted supplies and determined that $5,000 of supplies were still on hand

12/31 Salaries are to be paid on 1/3. The total amount of current year expense is $550,000. The amount unpaid related to this amount at year-end is $50,000.

12/31 Determined appropriate total depreciation is $20,000

12/31 Determined that there is still about $40,000 to do for client X

12/31 Determined that the bond purchased on 10/1 was now worth $38,000, However, the bond was not sold.

12/31 We declared and paid a dividend of $14,000 to our investor

12/31 We received cash of $500 in interest from Pear Inc.

Tax Rate is 21% (none of the tax is paid, but it is accrued as a liability)