Prepare the journal entries for the given

Question

Transactions:

1. Acquired cash of $154,300 from the issue of common stock.

2. Borrowed $148,000 cash from the bank on July 1, 2016.

3. Paid $160,000 cash to purchase fixed assets - land that cost $40,000 and a building that cost $120,000.

4. Earned and recognized consulting revenue on account for $227,000

5. Collected $197,325 on the accounts receivable during the year

6. Incurred $100,000 of consulting expenses on account during the year.

7. Paid $95,000 on the accounts payable during the year.

8. Paid $72,450 cash for other operating expenses during the year.

9. Paid the company owners $4,775 of dividends.

10. Received $15,570 cash for services to be performed in the future.

11. On June 1, paid $8,100 cash in advance for a one-year lease to rent office space.

12. Paid $5,650 cash for salaries expense.

Information for December 31, 2016 ADJUSTING ENTRIES:

13. Completed $11,500 of services performed described in Transaction 10.

14. Adjust Prepaid Rent account for rent used up during the year. (7 months)

15. The building was purchased in January. Use the straight-line method to depreciate the building purchased in Transaction 3. Management estimated that it had a useful life of 15 years. Record the building depreciation.

16. Recognized that $7,600 of Salary Expense has been incurred on December 31. The employees are owed this for the services they provided in December but will not be paid to them until January. Record the year end accrual for salary expense.

17. Accrued interest expense for loan in # 2. Terms: interest rate 10%, in one year. (Loan was outstanding 6 months during 2016).

Fill out the sheets provided below.

	Income Statement
Event	Consulting Revenue	Consulting Expenses	Other Operating Expense	Salary Expense	Interest Expense	Rent Expense	Depreciation Expense	Net Income
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Net Income
Total	0	0	0	0	0	0	0	0

Income Statements
		2016
Revenues:
Consulting Revenue
Expenses:
Consulting Expenses
Other Operating Expense
Salary Expense
Interest Expense
Rent Expense
Depreciation Expense
Total Expenses		-
Net Income		$-
Statement of Changes in Stockholders Equity
		2016
Beginning Common Stock
Issued Common Stock
Ending Common Stock		-
Beginning Retained Earnings
Plus: Net Income
Less: Dividends
Ending Retained Earnings		-
Total Stockholders Equity		$-

Balance Sheet (Fill-in amounts)
		2016
Assets
Cash
Accounts Receivable
Prepaid Rent
Land
Building
Accum. Depreciation
Total Assets		-
Liabilities
Accounts Payable
Salaires Payable
Unearned Revenue
Accrued Interest Payable
Bank Note Payable
Total Liabilities		-
Stockholder's Equity
Common Stock
Retained Earnings
Total Stockholder's Equity		-
Total Liabilities & Stockholder's Equity		$-
Statements of Cash Flows
		2016
Cash Flows from Operating Activities
Cash Received from Customers
Cash Paid for Expenses
Net Cash Flow from Operating Activities		-
Cash Flows from Investing Activities
Cash Paid for Building
Cash Paid for Land
Net Cash Flows from Investing Activities		-
Cash Flows from Financing Activities
Cash from Sale of Stock
Cash from Bank Note
Cash paid for dividends
Net Cash Flows from Financing Activities		-
Net Change in Cash		-
Plus: Beginning Cash Balance
Ending Cash Balance		$-