V49 AB D E 1 Northeast Welding experience the following events during 2014: F G H 3 1 Started operations by issuing in $68,000 common stock in exchange for cash. 2 Purchased equipment for $48,000 in cash. 3 Paid $3,000 cash in advance for rent for the period from February 1, 2014 to February 1, 2015. 6 4 Received $2,400 cash in advance for services to be performed evenly over the period from September 1, 2014 to September 1, 2015. 5 Perform services for customers on account for $38,500. 6 Incurred operating expenses on account in the amount of $17,000. 7 Collected in $32,500 cash from accounts receivable. 11 8 Paid $12,000 cash for salaries expense. 12 9 Paid $14.500 cash as a partial payment on accounts payable. 13 Adjusting Entries 14 10 Made the adjusting entry for the expired rent. (See Event 3.) 10 11 Recognized revenue for services performed in accordance with Event 4. 16 10 7 Collected in $32,500 cash from accounts receivable. 8 Paid $12,000 cash for salaries expense. 9 Paid $14,500 cash as a partial payment on accounts payable. 13 Adjusting Entries 14 10 Made the adjusting entry for the expired rent. (See Event 3.) 11 Recognized revenue for services performed in accordance with Event 4. 12 Recorded $1,600 of accrued salaries at the end of 2014. 13 Recorded depreciation on the equipment. The equipment was placed in service on February 1, has a 4- year estimated life, no salvage value, and the company use straight-line depreciation. NORTHEAST WELDING General Journal 2014 Date Impact on Profit Margin Account Debit Credit co non F G H D E NORTHEAST WELDING General Journal 2014 Impact on Profit Margin Credit Date 1 Account Cash Common Stock Debit 68,000 No Change 68,000 Instructions Handout 1 Handout 2 Handouts Handout 4 Northeast Welding 62 Closing Entries 62 Closing Entries