1. January 1 st. The company decided to rent a new store located in the centre of the city, in order to boost sales. Therefore they paid in advance $28,000 for rent for the next 36 months. 2. January 15th. The company purchased inventory on account at $72,000. 3. February 14th. The company purchased office supplies for $5,000, paying cash. During 2022, the company consumed $1,000 of office supplies. 4. March 31st. The company received a $11,000 payment from a customer for services to be performed later. On December 31, 2022, the company had performed 40% of the total service. 5. April 5th. The company collected all outstanding accounts receivable from the previous year. 6. May 18th. The company paid legal expenses in cash, $12,500. 7. June 30th. During the first half of the year, the company had sales of $122,000 (40% in cash and 60% on credit). 8. September 30th. The company borrowed $24,000 in a 12-month, 5% (annual rate) note (loan) payable. The amount borrowed and the interest will be paid to the bank at maturity. journal entries
1. January 1 st. The company decided to rent a new store located in the centre of the city, in
order to boost sales. Therefore they paid in advance $28,000 for rent for the next 36
months.
2. January 15th. The company purchased inventory on account at $72,000.
3. February 14th. The company purchased office supplies for $5,000, paying cash. During
2022, the company consumed $1,000 of office supplies.
4. March 31st. The company received a $11,000 payment from a customer for services to be
performed later. On December 31, 2022, the company had performed 40% of the total
service.
5. April 5th. The company collected all outstanding accounts receivable from the previous
year.
6. May 18th. The company paid legal expenses in cash, $12,500.
7. June 30th. During the first half of the year, the company had sales of $122,000 (40% in
cash and 60% on credit).
8. September 30th. The company borrowed $24,000 in a 12-month, 5% (annual rate) note
(loan) payable. The amount borrowed and the interest will be paid to the bank at
maturity.
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