Recording Journal Entries and Posting Effects to T-Accounts At January 1 (beginning of its fiscal year), Freeman Inc., a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): Cash $1,900 Accounts payable Required: Short-term investments Accounts receivable Supplies Prepaid expenses Office equipment 410 Unearned revenue 3,570 Salaries payable 150 Short-term note payable 4,720 Common stock ($1 par value) 1,050 Additional paid-in capital Retained earnings $210 1320 870 780 50 6,560 2010 1. Prepare journal entries for the following transactions for the current year. Use the balance sheet account titles above and the revenue or expense account titles mentioned in requirement (2) a. Received $9,500 cash for consulting services rendered. b. Issued 10 additional shares of common stock at a market price of $120 per share. c. Purchased 5640 of office equipment, paying 25 percent in cash and owing the rest on a short-term note. d. Received $890 from clients for consulting services to be performed in the next year. e. Bought $470 of supplies on account Incurred and paid $1,800 in utilities for the current year. g. Consulted for clients in the current year for fees totaling $1.620, due from clients in the next year. A. Received $2,980 from clients paying on their accounts 1. Incurred 56,210 in salaries in the current year, paying $5,300 and owing the rest (to be paid next year), J. Purchased $1,230 in short-term investments and paid $800 for insurance coverage beginning in the next fiscal year. Received $10 in interest revenue earned in the current year on short-term investments. 2. Create T-accounts for the balance sheet accounts and for these additional accounts: Consulting Fees Revenue, Interest Revenue, Salaries Expense, and Utilities Expense. Enter the page 152 beginning balances of the balance sheet accounts. Freeman's income statement accounts had zero balances. Post the journal entry effects in requirement (1) above into the T- accounts, using the letter of each transaction as the reference. 3. Using the data from the T-accounts, amounts for the following at the end of the current year were Revenue $ Assets $ -Expenses 5 Liabilities $ Net Income $ +Stockholders' Equity $