Question - Prepare general journal entries to record the following transaction and related year end adjustment, if necessary, for The Company:
Date - Transactions
01/01/09 - The Company purchased a computer that costs $15,000 for cash. The Computer had no salvage value and a 3 year useful life. The Company uses straight-line depreciation method
03/01/09 - The Company borrowed $10,000 from a ban k by signing a one-year note at 12% p.a.
05/01/09 - The Company paid $2,400 cash in advance for a one-year office space with occupancy to begin 05/01/09
10/01/09 - The Company purchased $795 of supplies on account amounting to $40,000
Adjusting entries needed to be made based on the above transactions, as well as the following data:
- Salaries that had been earned by the sales staff but had not yet been paid amounted to $2,300.00
- Supplies worth $180.00 were on hand at the 12/31/09.