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Katy Williams is the manager of Blue Light Arcade. The company provides entertainment for parties and special events. Prepare journal entries for the following events relating to the year ended December 31. If the event is not a transaction, write no transaction.
a. Blue Light Arcade received $ 50 cash on account for a birthday party held two months ago.
b. Agreed to hire a new employee at a monthly salary of $ 3,000. The employee starts work next month.
c. Paid $ 2,000 for a table top hockey game purchased last month on account.
d. Repaid a $ 5,000 bank loan that had been outstanding for six months. (Ignore interest.)
e. The company purchased an air hockey table for $ 2,200, paying $ 1,000 cash and signing a short- term note for $ 1,200.
The lease will run for five years and the payments are $900 per month. During 2009, she uses her car 20% for business and 80% for personal activities. Assuming the dollar amount from the IRS table is $233, determine Lana's deduction for the lease ..
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