Prepare Journal Entries and Adjusting Journal Entries:

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 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 principal will be paid on the maturity date Prepaid a year's rent for $24,000 (cash) for the current year. the first month's rent was due 1/1 for January Purchased with cash - office equipment for $36,000 and supplies for $12,000 Received $ 150,000 cash for consulting, services to be performed in the future for client X 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. Prepaid $36,000 cash for a 12-month insurance policy (starting on 7/1) Purchased $ 10,000 more of supplies on credit Provided consulting services of $30,000 on credit to client Y from first line of consulting service division. Purchased $10,000 (with cash) of an investment in another company's (Pear Inc.) stock. Not considered by our management as a trading stock Collected $5,000 from client Y. Sold $50.000 services (20% cash deposit, remaining 80% on credit) to Client ZA from the first line of business. 90% of the services are performed by year-end. Found a buyer for second line of consulting services. Sold the business in exchange for $40,000 worth of equipment; which resulted in a gain of $40,000 Paid down the payable (supplies) with a $1,000 cash payment. Received $10,000 from Client ZA Counted supplies and determined that $5,000 of supplies were still on hand Hired employees in mid-December. Salaries are to be paid on 1/3. the total amount of current year expense is $15K. the amount unpaid related to this amount at year-end is $2K. Determined appropriate total depreciation is $ 10,000 Determined that there is still about $10,000 to do for client X Determined that the stock purchased on 10/1 was now only worth $12,000. However, the stock was not sold. We declared but did not pay a dividend of 10,000 to our investor We received cash of $2,000 in dividends from Pear Inc