Prepare journal entries using given information

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Reference no: EM132217523

Question: Prepare journal entries:

Jan. 1 Sold 5,000 shares of capital stock for a total of $500,000 cash.

Jan. 2 Paid the premium of $12,000 on a 24-month insurance policy on all assets.

Jan. 3 Purchased land and a building for a total of $350,000 cash. The land is valued at $50,000, while the building is valued at $300,000 and is expected to have a useful life of 30 years.

Jan. 10 Purchased a computer network system for $36,000 cash. The expected useful life is 6 years.

Jan. 15 Paid $2,400 cash for a phone system that should have a 3-year useful life.

Jan. 16 Paid cash to acquire equipment and furniture for business purposes at a cost of $12,000. The expected useful life is 4 years.

Jan. 19 Purchased office supplies for $1,250 cash. (Use the asset account â€œOffice Suppliesâ€ for such purchases.)

Jan. 24 Paid cash of $10,000 for binders, manuals, and workbooks for use in Sheldon's client programs. Sheldon's policy is to initially record these materials as an asset (Program Supplies) and to then expense the materials used for a particular training program when the program is completed.

Jan. 30 Paid wages of $1,800 and salaries of $3,600 for work performed during January.

Feb. 14 Completed the first client program for a fee of $9,500. The customer paid $2,500 of the fee that day, with the remainder billed on account. Program supplies used on the project had originally cost Sheldon $1,500.

Feb. 15 Paid wages of $2,400 in cash.

Feb. 19 Paid utilities for the month of January of $1,050 in cash.

Feb. 23 Purchased on account 30 specialized manuals as program supplies for use in computer training for a total of $1,800.

Feb. 28 Borrowed $45,000 from the bank on a 2-year note. The interest rate on the note is 6% per year (or 0.5% per month).

Mar. 1 Paid wages of $3,600 and salaries of $6,000.

Mar. 1 Completed on-site computer training for two customers: JKL Products, Inc., and Watson Company. Billed JKL $11,000 on account. The fee for Watson was $9,200, half of which Watson paid in cash with the remainder on account. Program supplies used for the two customers totaled $4,600.

Mar. 4 Purchased additional program supplies on account for a total of $3,600.

Mar. 13 Collected $16,600 on account from credit customers.

Mar. 15 Completed first all-day computer workshop for walk-in customers. Sales totaled $4,250, all in cash. Program supplies used for the workshop originally cost Sheldon $1,850.

Mar. 16 Billed Coastal Corporation $7,500 for on-site training completed on March 16. Program supplies for the training originally cost Sheldon $2,500.

Mar. 16 Paid wages of $3,700.

Mar. 17 Purchased office supplies of $750 on account.

Mar. 21 Paid $3,200 to suppliers for materials previously purchased on account.

Mar. 23 Paid utilities for the month of February of $1,800 in cash.

Mar. 26 Received a $2,000 cash advance from Watson Company for additional computer training to begin April 1, 2018.

Mar. 29 Collected $6,250 on account from credit customers.

Mar. 31 Purchased $3,600 of program supplies for cash.

Reference no: EM132217523

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