HWK__4 - HOMEWORK #4 DUE FRIDAY, FEB 11 (6 points) On...

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HOMEWORK #4 DUE FRIDAY, FEB 11 (6 points) On January 1, 2010, two individuals Peter and Michael formed the Initech Corporation. They plan to provide technology consulting services and sell printer cartridges. Transactions for January are shown below: JANUARY 1 Michael contributed $100,000 cash to start the business while Peter contributed $100,000 worth of computer equipment; each of them received shares of stock. 4 A building was built for $120,000. The corporation financed the purchase entirely with debt by signing a note promising to pay the balance in two years. 5 Paid this month’s rent on additional computer server space of $2,500. 9 Purchased $15,000 of printer cartridge inventory for the business all on account. 16 Performed consulting services and billed customer for $15,000. 21 Received $5,000 from a customer on previously billed services. 24 Sold all of the previously purchased printer cartridges for $25,000, receiving the entire amount in cash. (Hint: There are four accounts in this journal entry)
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This note was uploaded on 11/11/2011 for the course ACC 201 taught by Professor Bokmier during the Spring '10 term at Michigan State University.

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HWK__4 - HOMEWORK #4 DUE FRIDAY, FEB 11 (6 points) On...

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