Question

Question 1: Frances Corporation provide the following financial information for the financial year 2014-2015.

Sr. #	Transactions
1	On January 1, 2014, Frances Corporation started doing business and the owners contributed $200,000 capital in cash.
2	The company paid $24,000 to cover the rent for the office space for the 24-month period from January 1, 2014, to December 31, 2015.
3	On March 1, 2014, MSK Inc. entered into a consulting contract under which Frances Corporation promised to provide consulting to MSK Inc. for the 10-month period from March 1, 2014, to December 31, 2014. In return, MSK promised to pay a monthly consulting fee of $15,000, which was to be paid in January 2015. Frances fulfilled its contractual obligation during 2014.
4	On July 1, 2014, Frances purchased office equipment for $100,000 cash. The equipment has an estimated useful life of five years and no salvage value. The equipment was immediately placed into use. Frances uses the straight-line method of depreciation. It records depreciation expense in proportion to the number of months’ usage.
5	Through November 30, 2014, the company had paid $66,000 to its employees for 11 months of salaries. Accrued salaries on December 31, 2014, were $6,000.
6	On December 31, 2014, Norbert Corporation advanced $20,000 to Frances Corporation for consulting services to be provided during 2015.

Required:

Provide journal entries for each of the above transaction using general journal format.

Answer 1

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