Question
record the 2017 transactions listed below AND the necessary year end adjusting journal entries. 1. Issued an additional 10,000 shares of common stock on January
record the 2017 transactions listed below AND the necessary year end adjusting journal entries.
1. Issued an additional 10,000 shares of common stock on January 2. The stock was sold for $80,000, which equals the par value of the stock.
2. Purchased store equipment for $10,000 cash on January 3.
3. Provided services for cash of $35,000 on February 5.
4. Provided services on credit for $90,000 on February 10.
5. Received bill and paid utilities of $15,000 on February 15.
6. Paid sales salaries of $30,000 on March 1.
7. Incurred legal fees of $6,000 on April 10, but did not pay for these services.
8. Declared and paid dividends to stockholders of $2,000 on April 30.
9. Collected $25,000 for services to be provided over the coming year on June 30.
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10. Paid $72,000 for a three-year insurance policy on July 10 with coverage beginning on August 1.
11. Paid $1,000 for a three-week equipment rental on September 10.
12. Collected $10,000 from the February 10 transaction on October 20.
13. Paid $1,000 of the amount owed for legal fees incurred on April 10 on November 18.
14. Sold land with cost of $100,000 for $120,000 cash on December 1.
Suzanne also provided you the following information that she thought may be helpful in preparing the year-end financial statements.
15. As of December 31, Plush has not recorded any insurance expense for the year. The only insurance policy it owns is the one purchased in #10 above.
16. Plush depreciates its store equipment at a rate of $8,000 per year. Depreciation expense has not been recorded as of December 31.
17. For the fees collected on June 30 (#9 above), Plush estimated that 30% of the service fees collected in advance had been earned by the end of the year.
18. Plush received a timesheet from a field technician indicating that services amounting to $35,000 had been provided that need to be billed to customers and recorded.
19. Plush incurs salaries of $4,000 at the end of the year. The next payroll date is January 2 of the following year. (Ignore payroll taxes and withholdings)
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