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E$3-12($Algo$)$ Recording Journal Entries and Posting Effects to T$-$Accounts LO$3-3,3-4$

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At January $1($beginning of its fiscal year$),$ Freeman, Incorporated, a financial services consulting firm, reported the following account balances $($in thousands, except for par and market value per share$)$:

Cash $$1,970$ Accounts payable $$280$

Short$-$term investments $480$ Unearned revenue $1,390$

Accounts receivable $3,640$ Salaries payable $940$

Supplies $220$ Short$-$term note payable $850$

Prepaid expenses $4,790$ Common stock $($$$1$ par value$)120$

Office equipment $1,190$ Additional paid$-$in capital $6,630$

Retained earnings $2,080$

Received $$9,570$ cash for consulting services rendered.

Issued $24$ additional shares of common stock at a market price of $$155$ per share.

Purchased $$710$ of office equipment, paying $20$ percent in cash and owing the rest on a short$-$term note.

Received $$960$ from clients for consulting services to be performed in the next year.

Bought $$540$ of supplies on account.

Incurred and paid $$1,870$ in utilities for the current year.

Consulted for clients in the current year for fees totaling $$1,690,$ due from clients in the next year.

Received $$3,050$ from clients paying on their accounts.

Incurred $$6,280$ in salaries in the current year, paying $$5,370$ and owing the rest $($to be paid next year$).$

Purchased $$1,300$ in short$-$term investments and paid $$870$ for insurance coverage beginning in the next fiscal year.

Received $$45$ in interest revenue earned in the current year on short$-$term investments.

E$3-12$ Part $1$

Required:

$1.$ Prepare journal entries for each transaction for the current year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in thousands, not in dollars.