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Wildhorse Company began operations on January 1, 2024. In its first year, the following transactions occurred: 1. Issued common shares for $306,000 cash. 2. Borrowed
Wildhorse Company began operations on January 1, 2024. In its first year, the following transactions occurred: 1. Issued common shares for $306,000 cash. 2. Borrowed $51,000 from the bank for a five-year term. 3. Purchased equipment for $204,000 cash. 4. Purchased supplies, on account, for $5,100. 5. Sales on account amounted to $102,000. 6. Collected $86,700 from customers for services provided earlier. 7. Paid wages of $30,600 to employees. 8. Paid $20,400 for utilities (telephone, electricity, heat, & water). For Wildhorse Company, the following adjustments are required prior to them being able to prepare financial statements for the year ended December 31, 2024. 1. The bank Ioan was taken out on January 1st and has an interest rate of 8%. Interest is due January 1st of the following year. 2. The equipment was purchased on January 1st and has an estimated useful life of 10 years and a residual value of $10,200. The company uses the straight-line depreciation method. 3. Wages in the amount of $1,530 were owed at year end. 4. Rent in the amount of $12,240 was due at year end but was not recorded or paid. 5. A physical count at year end revealed that only $1,530 of the supplies remained on hand. amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit 1. 2. 3. 4. 5
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