Question

Please create a Accounting Journal for each of the following.

BUSINESS TRANSACTIONS for the Month of December.

1) 12-1 The Shark Corp Received $220,000 from SJ Sharkie in exchange for 5,000 shares of Common Stock.

2) 12-2 The Shark Corp Borrowed $45,000 from Wells Fargo Bank and signed a Note.

3) 12-3 The Shark Corp purchased Office Furniture for $120,000(5 year life), on account from IKEA..

4) 12-4 The Shark Corp purchased Computer Equipment for $60,000(5 year life), on account from Office Depot

5) 12-5 The Shark Corp paid $18,000 with Check#101 for Corporate Insurance for the next 12 months.(Dec-Nov)

6) 12-10 The Shark Corp paid $20,000 with Check#102 for December Rent.

7) 12-11 The Shark Corp provided a mascot Seminar for the NIKE Corp and Billed Nike $120,000 on account.

8) 12-15 The Shark Corp received the December Utility Bill from PGE in the amount of $5,000 to be paid in Jan.

9) 12-16 The Shark Corp received the December Telephone Bill from SBC for $6,000 to be paid Later.

10) 12-17 The Shark Corp received a $70,000 Check from Nike Corp on account for services previously provided.

11) 12-20 The Shark Corp paid $10,000 with check #103 to Mark’s Marketing for Professional Fees Expense.

12) 12-25 The Shark Corp paid $44,000 with Check #104 for December Salary expenses.

13) 12-27 The Shark Corp received a $25,000 Check from Buick Corp for services to be provided in January.

14) 12-28 The Shark Corp Paid $120,000 with Check#105 to IKEA Corp for the Office Furniture purchased above.

15) 12-29 The Shark Corp Paid $6,000 with Check #106 to SBC on account for the Telephone Bill.

16) 12-30 The Shark Corp Paid $12,000 with Check#107 to Mr. SJ Sharkie for Dividends to the owner.

17) 12-30 The Shark Corp paid $3,000 with check #108 to WF Bank on the note, $1,000 was for Interest Expense.

18) 12-31 The Shark Corp recorded one Month of Insurance expense from the Prepaid Insurance account.

19) 12-31 The Shark Corp recorded one Month of Depreciation Expense on the Furniture and the Computer Equip.

20) 12-31 The Shark Corp recorded Income Tax Payable and Income Tax Expense for December, which is 40% of Net

Income.(Taxes to be discussed in class)

Answer 1

S. No.	Particulars	Debit ($)	Credit ($)
12-1	Bank A/c Dr.	220,000.00
	To Sj Sharkie-for stock		220,000.00
	(Being common stock sold @ 5000 shares)
12-2	Bank A/c Dr.	45,000.00
	To Short term loan-Wells Fargo A/c		45,000.00
	(Being loan borrowed from wells fargo)
12-3	Furniture A/c Dr.	120,000.00
	To Creditor for assets-IKEA A/c		120,000.00
	(Bring furniture purchased from IKEA)
12-4	Office Equipment-Computer A/c Dr.	60,000.00
	To Creditor for assets-Office depot A/c		60,000.00
	(Being furniture purchased from office depot)
12-5	Corporate Insurance A/c Dr (Dec-Mar)	6,000.00
	Prepaid Expense A/c Dr. (Apr-Nov)	12,000.00
	To Bank A/c		18,000.00
	(Being Coporate Insurance paid by check 101)
12-10	Rent A/c Dr	20,000.00
	To Bank A/c		20,000.00
	(Being rent paid for the month of december)
12-11	Nike Corp A/c Dr.	120,000.00
	To Advertising and marketing-revenue A/c		120,000.00
	(Being mascot seminar service provided to Nike)
12-15	Utility expense A/c Dr.	5000.00
	To Accrued Expenses A/c		5,000.00
	(Being utility bill for december to be paind in jan already accrue)
12-16	Telephone Expense A/c -Dr.	6,000.00
	To Accrued Expenses A/c		6,000.00
	(Being telephone bill for december to be paid later)
12-17	Bank A/c Dr.	70,000.00
	To Nike Corp A/c		70,000.00
	(Being Amount received from nike corp.)
12-20	Professional Expense A/c Dr.	10,000.00
	To Bank A/c		10,000.00
	(Being paid to Mark's marketing #103)
12-25	Salary and wages A/c Dr.	44,000.00
	To Bank A/c		44,000.00
	(Being paid for december salary #104)
12-27	Bank A/c Dr.	25,000.00
	To Advance from customer A/c		25,000.00
	(Being advance for service in jan)
12-28	Creditor for assets-IKEA A/c Dr.	120,000.00
	To Bank A/c		120,000.00
	(Being paid to IKEA for furniture - 105)
12-29	Accrued Expense A/c Dr.	6,000.00
	To Bank A/c		6,000.00
	(Being paid to SBC for telephone expense-106)
12-30	Dividends paid A/c Dr.	12,000.00
	To Bank A/c		12,000.00
	(Being dividends paid to SJ Sharkie #107)
12-30	Interest on loan from wells fargo A/c-Dr.	1,000.00
	Short term loan-Wells Fargo A/c	2,000.00
	To Bank A/c		3,000.00
	(Being Loan repaid with interest- #108)
12-31	Already done above
12-31	Depreciation A/c Dr.	3,000.00
	To Fixed Assets- Furniture A/c		2,000.00
	To Office equipment - Computer		1,000.00
	(Being depreciation expense for december)
12-31	To be discussed in class!!

Depreciation Expense-

Furniture - Cost of furniture = 120,000

Useful life- 5 years

Yearly Depreciation - 120,000/5 = $24,000

Monthly Depreciation = 24000/12 = $2,000

Computer - Cost of Computer = 60,000

Useful life- 5 years

Yearly Depreciation - 60,000/5 = $12,000

Monthly Depreciation = 12000/12 = $1,000