Prepare the journal entries Post the journal entries to the

Accounting 3210: Demonstration Problem January 26, 2018 Name Section Time: the following any began its operations on January 1, 2015. During itsfist year, the company engaged in 1. Issued common stock for $10,000 cash. 2. Borro wed $4,000 cash from a local bank. The note matures in two years. 3. Purchased $500 of supplies on account. 4. Recognized revenue of $8,000 for services provided on 5. Paid $3,900 cash for salaries expense. 6. Paid $2,400 cash in advance for a one-year lease to rent 7. Purchased $3,500 of office furniture on account. 8. Received $1,800 cash for services to be performed in the future. 9. Collected $3,000 cash from accounts receivable. 10. Paid $1,200 cash for utilities. 11. Paid dividends of $1,000 cash to the stockholders. 12. Invested $2,000 cash in a two-year certificate of deposit. 13. Repaid $1,600 principal on the bank loan described in Event No. 2 14. Purchased land for $2,700 cash. account. office space Adjusting Entries: 15. Recognized $400 of accrued interest expense on the bank loan described in Event No. 2 16. The contract described in Event No.8 was initiated on September 1. It is a nine month service contract. Record the appropriate adjusting entry. 17. Counted supplies on hand at December 31. Determined the company had $100 of supplies remaining. 18. Recognized accrued salary expense of $300. 19. Recognized accrued interest revenue on the CD purchased in Event No. 12. The CD was purchased on July 1st and has a 5% interest rate. 20. Recognized depreciation expense on the office furniture purchased in Event No. 7. The office furniture was purchased on January 1\". It has a ten-year life and no salvage value. The company uses straight-line depreciation. 1. Recognized rent expense for the lease in Event No. 6. The lease agreement began on Octo

Solution

1. Cash A/c Dr 10000

Common Stock Cr. 10000

2. Cash A/c Dr. 4000

Loan A/c Cr. 4000

3. Purchases A/c Dr. 500

Supplier A/c Cr. 500

4. Debtor A/c Dr. 8000

Sales A/c Cr. 8000

5. Salaries A/c Dr. 3900

Cash A/c Cr. 3900

6. Advance Lease Rental A/c Dr. 2400

Cash A/c Cr. 2400

7. Office Furniture A/c Dr. 3500

Cash A/c Cr. 3500

8. Cash A/c Dr. 1800

Unaccrued Income Cr 1800

9. Cash A/c Dr. 3000

Debtors A/c Cr. 3000

10. Utilities A/c Dr. 1200

Cash A/c Cr. 1200

11. Dividend A/c Dr. 1000

Cash A/c Cr. 1000

12. COD A/c Dr. 2000

Cash A/c Cr. 2000

13. Loan A/c Dr. 1200

Cash A/c Cr. 1200

14. Land A/c Dr. 2700

Cash A/c Cr. 2700

15.Interest A/c Dr. 400

Outstanding Interest A/c Cr. 400

16. Sales A/c Dr. 1000

Unaccrued Income A/c Cr. 1000

18. Salary A/c Dr. 300

Outstanding Salary A/c Cr. 300

19. COD A/c Dr. 50

Accrued Interest A/c Cr. 50

20. Depriciation A/c Dr. 35

Furniture A/c Cr. 35