These entries must logged

Date Transaction 1-Jan-20 Five friends decide to start a computer sales and repair store; start the company by issuing 100,000 shares with a par value of $1 sold to each friend for $3 each. 1-Jan-20 Realizing they are going to need more cash to run the business, the company obtained a long term bank loan for $200,000. Payments will not have to be made unitl the following year but interest will accrue at 2% 1-Jan-20 The new owners already had various transactions they had agreed on for the first day of operations; they are as follows: Equipment to diagnose customer computers was purchased for $122,000 cash. The equipment has a 10 year life and a $2,000 residual value - Inventory to be sold to customers was purchased on credit for $50,000 - Supplies to be used for operations was purchased for cash of $10,000 - In order to get a good discount Store Rent was paid in full for the year; $24,000 cash was paid A friend of the owners who had another company paid them $6,000 cash upfront for a full year of monthly computer service Companies typically record adjusting entries at the end of each month. In order to simplify this execise adjusting entries will be recorded on a quartery basis. Below please find the regular transactions for each quarter. Don't forget to book the adjusting entries for each quarter as well. Quarter 1 Service revenue for $30,000 was provided; $20,000 was collected in cash and the remainder is still owed by the custormers Services for the $6,000 advance was also done for the quarter. Book this as an adjusting entry separately. Inventory at a cost of $10,000 was sold for $15,000 cash Employees earned $6,000 in wages for the quarter; paychecks for the quarter totalled $5,500 (i.e. the other $500 will be in next quarters first paycheck) $10,000 related to the inventory purchased on credit was paid to the supplier Adjusting entries: Accrue Interest, Depreciation, Prepaid Rent, Unearned Revenues, Supplies audit shows $8,000 remain