The John Marshall Company, Inc., which provides consulting services to major utility companies, was formed on January 2 of this year. Transactions completed during the first year of operation were as follows:

January 2 Issued 600,000 shares of stock for $10,000,000.

January 10 Acquired equipment in exchange for $2,000,000 cash and a $6,000,000 note payable. The note is due in ten years.

February 1 Paid $24,000 for a business insurance policy covering the two-year period beginning on February 1.

February 22 Purchased $900,000 of supplies on account

March 1 Paid wages of $185,600

March 23 Billed $2,730,000 for services rendered on account

April 1 Paid $100,000 of the amount due on the supplies purchased February 22.

April 17 Collected $210,000 of the accounts receivable

May 1 Paid wages of $200,400.

May 8 Received and paid bill for $98,200 for utilities.

May 24 Paid $42,500 for sales commissions.

June 1 Made the first payment on the note issued January 10. The payment consisted of $60,000 interest and $200,000 applied against the principal of the note.

June 16 Billed customers for $560,000 of services rendered.

June 30 Collected $300,000 on accounts receivable.

July 10 Purchased $155,000 of supplies on account.

August 25 Paid $160,000 for administrative expenses.

September 23 Paid $30,000 for warehouse repairs.

October 1 Paid general wages of $90,000.

November 20 Purchased supplies for $60,000 cash.

December 15 Collected $125,600 in advance for services to be provided in December and January.

December 30 Declared and paid a $50,000 dividend to shareholders.

Cash 101 Accounts Rec. 102 Notes Payable 220 Prepaid Insurance 104 Dividends 320 Depreciation expense 505 Wage expense 501 Repairs expense 505 Accumulated Depreciation 112 Retained Earnings 310 Supplies 103 Unearned service Revenue 202 Selling expenses 503 Supplies Expense 507 Service Revenue 401 Equipment 110 Interest Payable 210 Interest Expense 520 Utilities expense 502 Administrative Expenses 504 Acct. Payable 201 Common Stock 301 Income Summary 601 Wages Payable 203 Insurance Expense 506