Accounting homework help.
|Section 1: (1) Prepare journal entries for additional April 2016 Transactions|
|a. Received investment cash by additional investors and distributed to them 1,000 shares of $1 par value common stock to them with a market price of $75 per share.
b. Purchased $10,000 of equipment, paying $4,000 in cash and owing the rest on accounts payable to the supplier.
c. On April 1st took out a short term bank note for $45,000 which is due within one year.
d. Loaned $1,200 to an employee who signed a note but does not require interest.
e. Purchased $6,250 of land; paid $ 6,250 in cash.
f. Paid $6,000 to the equipment supplier in (b) above.
g. Purchased Supplies for $5,000 cash.
h. Provided $55,000 in service to customers during the month, with $32,500 on account and the rest received in cash.
i. Received cash for gift cards sold in April of $20,000
j. Purchased $127,500 inventory on account.
k. Paid payroll in April for a total of $14,000 cash to employees. Some of the payroll was earned in the prior month.
l. Received $ 28,000 on account paid by customers.
m. Purchased and used fuel of $1,250 in delivery vehicles during the month (paid for in cash).
n. Incurred $5000 in utility usage during the month; paid $2000 in cash and owed the rest on account.
o. Paid $3000 in dividends declared in previous month.
p. Paid Income taxes due from previous month of 8000
q. Sold merchandise for 300,000 receiving cash of 200,000 and the rest on credit from customers. The merchandise sold had a cost of 120,000.
|Section 2: (1) Prepare journal entries for April 2016 Adjusting Entries .|
|r. The $9,000 in unearned revenue on the opening trial balance for fees paid upfront for monthly service for the year prepaid in January for $12,000. None of the gift cards purchased this month were used.
s. Prepaid insurance costing $300 for coverage for six months (January through June.
t. The company estimates that depreciation expense for the month of April is $500 on equipment purchased prior to this month. Equipment purchased this month the estimate for depreciation is $200.
u. Wages have been paid through April 28. 10 employees worked the last two days of April and will be paid in May. Wages accrue at $100 per day, per employee.
v. The phone company installed new phone lines in April at an estimated cost of $250. No entry has yet been recorded. The utilities bill will be received in May.
w. Interest accrues on the outstanding on all short term notes payable at an annual rate of 12 percent.
x. The remaining supplies are valued at $1,000.
y. Mortgage interest is estimated to be $1,500 for the month of April but has not been paid.
z. The estimated income tax for the month of April is 10,500
|Section 3: (1) Prepare the Adjusted Trial Balance.|
|Section 4: Prepare the closing entry.|