quiz 2 - Fa09

quiz 2 - Fa09 - Name_ 4-Digit # if known_Section_14516_...

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Name___ 4-Digit # if known___________Section__14516_____ Accounting Cycle: [093Q2] Prepare the appropriate journal entries based on this information for Year 1. 1. David Company [the firm] was formed on May 31, Year 1 when four people each invested $40,000 in the firm. On the same date, one investor lent $25,000 to the firm that is to be repaid on May 31, Year 2, along with $4,000 interest. 2. The firm leased an office space for three years on June 1, Year 1 and moved in that same day. The monthly rate was $3,000 and the rent has to be paid quarterly (every three months). Rent payments are due on August 31, November 30, February 28 and May 31, annually. Rent payments are made as scheduled. 3. On June 1, Year 1, the firm rented office equipment for a two-year period. The firm paid $7,200 at the time of signing the rental agreement and will have to pay the same amount for the second year of the two-year lease period. The firm began using this equipment on June 1, Year 1. 4.
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quiz 2 - Fa09 - Name_ 4-Digit # if known_Section_14516_...

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