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Unformatted text preview: Name________________________4-Digit # (if known)____Section_____ Accounting Cycle: [083Q1] Prepare the appropriate journal entries based on this information for Year 1. 1. Jackson Company [the firm] was formed on March 31, Year 1, when eight individuals each invested $20,000 in the firm. One investor lent $40,000 to the firm that is to be repaid on March 31, Year 2, along with $4,800 of interest. 2. The firm leased an office space for one year on April 1, Year 1, and moved in that same day. The monthly rate is $3,000 and rent for the entire year is due on March 31, Year 2, when the lease period ends. 3. On June 1, Year 1, the firm rented office equipment for a three-year period. Jackson paid $10,800 when signing the rental agreement covering the entire three-year period. 4. On June 15, Year 1, the firm purchased supplies for use in the business at a cost of $7,000. This amount was charged to the firm’s account. During the remainder of Year 1, Jackson used 70% of the supplies purchased on account. On September 1, Year 1, Jackson paid for 90% of the supplies purchased on...
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This note was uploaded on 10/07/2008 for the course ACCT 250A taught by Professor Hopkins during the Fall '07 term at USC.
- Fall '07