Requirement a. Journalize and post adjusting journal entries for Harry. (Record debits first, then Begin by preparing the adjusting journal entries. Of the cash payments received from customers on December 1, half of these services were per Account December 31 Read the requirements Transactions January 2: The owners invested $550.000 (the par value of the stock) into the business and acquired 55,000 shares of common stock in retum January 15: Harry bought an office building in the amount of $75,000. The company took out a long-term note from the bank to finance the purchase February 12: Harry billed clients for $95,000 of services performed March 1: Harry took out a two-year insurance policy, which it paid cash for in the amount of $23,400 March 10: Harry collected $8,000 from clients toward the outstanding accounts receivable balance May 13: Harry received cash payments totaling $230.000 for legal services-$87,000 was for services previously billed to customers on February 12 and the remainder was for services provided in May 1 yet recorded June 10: Harry purchased office supplies in the amount of $10,000, all on credit July 15 Harry paid wages of $24,000 in cash to office staff workers August & Harry p $10,000 balance owed to a supplier for the Print 8x Done
Requirement a. Journalize and post adjusting journal entries for Harry. (Record debits first, then Begin by preparing the adjusting journal entries. Of the cash payments received from customers on December 1, half of these services were per Account December 31 Read the requirements Transactions January 2: The owners invested $550.000 (the par value of the stock) into the business and acquired 55,000 shares of common stock in retum January 15: Harry bought an office building in the amount of $75,000. The company took out a long-term note from the bank to finance the purchase February 12: Harry billed clients for $95,000 of services performed March 1: Harry took out a two-year insurance policy, which it paid cash for in the amount of $23,400 March 10: Harry collected $8,000 from clients toward the outstanding accounts receivable balance May 13: Harry received cash payments totaling $230.000 for legal services-$87,000 was for services previously billed to customers on February 12 and the remainder was for services provided in May 1 yet recorded June 10: Harry purchased office supplies in the amount of $10,000, all on credit July 15 Harry paid wages of $24,000 in cash to office staff workers August & Harry p $10,000 balance owed to a supplier for the Print 8x Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Requirement a. Journalize and post adjusting journal entries for Harry. (Record debits first, then
Begin by preparing the adjusting journal entries.
of the cash payments received from customers on December 1, half of these services were perf
Account
December 31
Read the requirements
Transactions
January 2: The owners invested $550,000 (the par value of the stock) into the
business and acquired 55,000 shares of common stock in return
January 15: Harry bought an office building in the amount of $75,000. The
company took out a long-term note from the bank to finance the purchase
February 12: Harry billed clients for $95,000 of services performed.
March 1: Hamry took out a two-year insurance policy, which it paid cash for in the
amount of $23,400.
- March 10: Harry collected $8,000 from clients toward the outstanding accounts
receivable balance.
May 13: Harry received cash payments totaling $230,000 for legal
services $87,000 was for services previously billed to customers on February
12 and the remainder was for services provided in May not yet recorded
June 10: Harry purchased office supplies in the amount of $10,000, all on credit
July 15: Harry paid wages of $24,000 in cash to office staff workers
August 8: Harry paid off the $10,000 balance owed to a supplier for the
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