Week-1 Basic Journal Entries Pal's Planes, an airplane manufacturing company, begins business on 1/1/2017. Pal's specializes in selling and repairing airplanes. A listing of all of Pal's trial balance accounts can be found in "trial balance" tab below. For the transactions below, please record the necessary journal entries in the "Journal Entries" tab and update the balances in the unadjusted trial balance. I have provided a "T-Account" tab for each individual trial balance account to track the changes during the period. Transaction #1 On January 1, 2017, Pal invests $250,000 in exchange of 2,500 shares of $1 par Common Stock Transaction #2 On January 1, 2017, Pal's buys $17,000 worth of office supplies with cash. Transaction #3 On January 1, 2017, Pal pre-pays the following expenses for the next 12 months: Rent Expense $36,000 and Insurance Expense $6,000 Transaction #4 On January 1, 2017 Pal buys $90,000 worth of machines that will be used in modifying planes that will be sold. Pal noted that these machines will have useful life of 10 years and no salvage value at the end of the 10 years. Pal will use the straight- line depreciation method in depreciating the asset. Pal bought these machines with cash. Transaction #5 On January 1, 2017 Pal hires three employees: John Schultz, Office Manager, Frank Foster, Repairs Manager, and McCoy McDonald, Sales Manager. Each of the three employees will have a monthly salary of $6,000, which will be paid on the 5th day of the next month. Transaction #6 On January 2nd, Ozark Planes pre-pays Pal's Planes $96,000 to perform repair services on 6 planes. For each plane repaired, Pa's will receive $16,000 in revenue. Transaction #7 On January 2nd, John Schultz purchased 6 planes for $50,000 each at the boat action. These planes are ready for re-sale and were put into inventory on this date. Pal's purchased these boats on account and will be paid in 90 days. Transaction #8 On January 15th, Pal's sold 3 planes for $75,000 each to a customer. The customer will pay in cash for these planes in 30 days. (Hint: Remember there are two entries with a sale of goods) Transaction #9 On January 30th, Pal's announces that is has declared and paid a dividend of $1 to all shares of common stock. Assets Account Account Description 1000 Cash 1100 Accounts Receivable 1150 Allowance for Doubtful Accounts 1200 Inventory 1300 Pre-Paid Expense 1400 Supplies 1500 Machines 1550 Accumulated Depreciation Machine M Liabilities and Equity Account Account Description 2000 Accounts Payable 2100 Unearned Service Revenue 2200 Wages and Salaries Payable 3000 Common Stock 3050 Additional Paid In Capital 3100 Dividends 3200 Retained Earnings Income Statement Account Account Description 4000 Revenue-Plane Sales 4100 Revenue-Repair Services 5000 Cost of Goods Sold 6000 Wages and Salaries Expense 6100 Rent Expense 6200 Supplies Expense 6300 Insurance Expense 6400 Depreciation Expense 6500 Interest Income 6600 Bad Debt Expense MOLAR Debit Credit Account Description 1000 Cash 3000 Common Stock 3050 Additional Paid In Capital 250,000 2,500 247.500 Assets Liabilities and Equity Income Statement Check Figure 250,000 250,000 1000-Cash 2000-Accounts Payable Debit 4000-Revenue-Plane Sales Debit I Credit Debit Credit Credit Beginning Balance Beginning Balance Beginning Balance JE 1 250,000 Ending Balance 250,000 Ending Balance Ending Balance 1100-Accounts Receivable Debit 2100-Unearned Service Revenue Debit Credit 4100-Revenue- Repair Services Debit Credit Credit Beginning Balance Beginning Balance Beginning Balance Ending Balance Ending Balance Ending Balance D 1 1150-Allowance for Doubtful Accounts Debit 2200-Wages and Salaries Payable Debit Credit 5 000-Cost of Goods Sold Debit Credit Debit Credit Beginning Balance Beginning Balance Beginning Balance Ending Balance Ending Balance Ending Balance 1200-Inventory 3000-Common Stock Debit Credit 6000-Wages and Salaries Expense Debit 1 Credit Debit Credit Beginning Balance Beginning Balance Beginning Balance 2.500 JE 1 Ending Balance Ending Balance 2,500 Ending Balance 1300-Pre-Paid Expenses 3050-Additional Paid In Capital Debit Credit Credit 6100-Rent Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Beginning Balance 247.500 JE 1 Ending Balance Ending Balance 247.500 Ending Balance Assets Liabilities and Equity Income Statement Check Figure 250,000 250,000 247.500 Ending Balance Ending Balance Ending Balance 1400-Supplies 3100-Dividends 6200-Supplies Expense Debit Credit Debit Credit Debit Debit Beginning Balance Beginning Balance Beginning Balance Ending Balance Ending Balance Ending Balance 1500-Machines 3200-Retained Earnings Debit Credit 6300-Insurance Expense Debit Debit Credit Beginning Balance Beginning Balance Beginning Balance Ending Balance Ending Balance Ending Balance 1550-Accumulated Depreciation Machines Debit 6400-Depreciation Expense Debit Credit Tedit Beginning Balance Beginning Balance Ending Balance Ending Balance 6500-Interest Income Debit Credit Beginning Balance Ending Balance 6600-Bad Debt Expense Debit Credit Beginning Balance Ending Balance Debit Credit Assets Liabilities (+) Account Account Description 1000 Cash 1100 Accounts Receivable 1150 Allowance for Doubtful Accounts 1200 Inventory 1300 Pre-Paid Expense 1400 Supplies 1500 Machines 1550 Accumulated Depreciation Machine 2000 Accounts Payable 2100 Unearned Service Revenue 2200 Wages and Salaries Payable 3000 Common Stock 3050 Additional Paid In Capital 3100 Dividends 3200 Retained Earnings 4000 Revenue-Plane Sales 4100 Revenue-Repair Services 5000 Cost of Goods Sold 6000 Wages and Salaries Expense 6100 Rent Expense 6200 Supplies Expense 6300 Insurance Expense 6400 Depreciation Expense 6500 Interest Income 6600 Bad Debt Expense Equity (+) Income Statement 1 Check Figure