The Corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December the following transactions occurred Dec. 1 Issued 20,000 shares of capital stock to Paula Petersen and other investors in exchange for a total of $40,000 cash. Dec.1 Paid S9,600 to Mages Realty for 12 months rent paid in advance. (Use the Asset account Prepaid Rent for the entire amount) Dec. 2 Purchased plumbing repair equipment and tools from Host Corp. for S15,000 (use the account Plumbing Equipment). Paid S5,000 in cash with the balance due on a Note Payable (principal and interest due in 6 months) Dec. 4 Purchased office supplies on Account from Clousers for S1,000. Payment is due in 15 days These supplies are expected to last for several months. Dec. 5 Purchased a 6 month business Insurance Policy for $1,200 from the Seyler Agency (use the Asset account Unexpired Insurance for the entire amount). Dec. 10 Received S4,000 cash from the Wink Apartment Complex in Exeter Township as advance payment for services to be provided. (Use the Liability account: Unearned Plumbing Fees.) Dec. 16 Paid employee salaries for the first two weeks of December, S2,000. Dec. 16 Earned S7,500 in fees for plumbing repairs completed in the first two weeks of December. S3,000 was received in cash and the remainder was billed to PPI's customers on Account (due in 10 days.) The Corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December the following transactions occurred Dec. 1 Issued 20,000 shares of capital stock to Paula Petersen and other investors in exchange for a total of $40,000 cash. Dec.1 Paid S9,600 to Mages Realty for 12 months rent paid in advance. (Use the Asset account Prepaid Rent for the entire amount) Dec. 2 Purchased plumbing repair equipment and tools from Host Corp. for S15,000 (use the account Plumbing Equipment). Paid S5,000 in cash with the balance due on a Note Payable (principal and interest due in 6 months) Dec. 4 Purchased office supplies on Account from Clousers for S1,000. Payment is due in 15 days These supplies are expected to last for several months. Dec. 5 Purchased a 6 month business Insurance Policy for $1,200 from the Seyler Agency (use the Asset account Unexpired Insurance for the entire amount). Dec. 10 Received S4,000 cash from the Wink Apartment Complex in Exeter Township as advance payment for services to be provided. (Use the Liability account: Unearned Plumbing Fees.) Dec. 16 Paid employee salaries for the first two weeks of December, S2,000. Dec. 16 Earned S7,500 in fees for plumbing repairs completed in the first two weeks of December. S3,000 was received in cash and the remainder was billed to PPI's customers on Account (due in 10 days.)
