Question
Question 1: Frances Corporation provide the following financial information for the financial year 2014-2015. Sr. # Transactions 1 On January 1, 2014, Frances Corporation started
Question 1: Frances Corporation provide the following financial information for the financial year 2014-2015.
Sr. # | Transactions |
1 | On January 1, 2014, Frances Corporation started doing business and the owners contributed $200,000 capital in cash. |
2 | The company paid $24,000 to cover the rent for the office space for the 24-month period from January 1, 2014, to December 31, 2015. |
3 | On March 1, 2014, MSK Inc. entered into a consulting contract under which Frances Corporation promised to provide consulting to MSK Inc. for the 10-month period from March 1, 2014, to December 31, 2014. In return, MSK promised to pay a monthly consulting fee of $15,000, which was to be paid in January 2015. Frances fulfilled its contractual obligation during 2014. |
4 | On July 1, 2014, Frances purchased office equipment for $100,000 cash. The equipment has an estimated useful life of five years and no salvage value. The equipment was immediately placed into use. Frances uses the straight-line method of depreciation. It records depreciation expense in proportion to the number of months usage. |
5 | Through November 30, 2014, the company had paid $66,000 to its employees for 11 months of salaries. Accrued salaries on December 31, 2014, were $6,000. |
6 | On December 31, 2014, Norbert Corporation advanced $20,000 to Frances Corporation for consulting services to be provided during 2015. |
Required:
Provide journal entries for each of the above transaction using general journal format.
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