5. (30 pts) Stohr Company (a lighthouse consulting company) completed the transactions given below. The company prepares financial statements every month and the company's year-end is December 31st Please prepare journal entries for each a) January 20, 2012 - Issued capital stock to a new stockholder for $10,000 cash b) January 31, 2012 - Received twelve months rent in advance (on a warehouse) - total $36.000 c) February 28, 2012 - Record any entry necessary relating to the warehouse rental. d) February 28, 2012-Paid management salaries for March - total $80,000. e) March 31, 2012 - Record any entry necessary relating to the management salaries. f) April 1, 2012 -- Purchased a computer for $12,000, paying $3,000 down and signing a note for the remainder. The note bears interest at 15% and is due May 31, 2008. The computer has a three-year useful life and no salvage value. It will be depreciated on a straight-line basis. g) April 30, 2012 - Record any entries necessary relating to the computer and the debt on the computer. h) May 1, 2012 - Purchased and paid for supplies for $4,000. These supplies were placed in the storeroom. This was the only supplies purchase this month. At the beginning of the month the company had $1,000 of supplies on hand. i) May 31, 2012-The supplies on hand are valued at $500. Prepare any necessary entry j) May 31, 2012 - Record the payment of the computer debt -- f) above. k) June 30, 2012 - Provided consulting services to dients totaling $10,000 and received $7,000 cash. The remainder will be received in one month. 1) July 30, 2012 -- Received payment in fullfor the services recorded above, at June 30th. m) July 31, 2012-Signed a contract to provide advertising serves totaling $100,000 over the next year. 6. (4 pts) What would be the effect on the month end financial statements, of recording the issuance of capital stock in the previous problem (#5 part a)? For each type of account, indicate the dollar ($) amount of the increase or decrease that would result, or indicate that there would be no effect. Assets Liabilities Equity Revenue Expense Net Income Increase Decrease No Effect 7. (4 pts) What would be the effect on the month end financial statements, of recording the adjusting journal entry for management salaries in the previous problem (#5 parte)? For each type of account indicate the dollar ($) amount of the increase or decrease that would result, or indicate that there would be no effect. Assets Liabilities Equity Revenue Expense Net Income Increase Decrease No Effect 8. (4 pts) What would be the effect on the month end financial statements, of failing to record the adjusting journal entry for supplies in the previous problem (#5 parti)? For each type of account, indicate the dollar (5) amount of the misstatement that would result, or indicate that there would be no effect Assets Liabilities Equity Revenue Expense Net Income Overstated Understated No Effect 9. (4 pts) What would be the effect, on the month end financial statements, of failing to record the journal entry for providing consulting services to clients in the previous problem (#5 part k? For each type of account, indicate the dollar ($) amount of the misstatement that would result, or indicate that there would be no effect. Assets Liabilities Equity Revenue Expense Net Income Overstated Understated No Effect