Question

11/8: You purchase $500 of your own business´s common stock

11/11: Your business purchases paper and other office supplies for $95 (use supplies).

11/15: You start to gather some equipment to take with you when you begin your business. You have an excellent computer that is old, but works fine. You decide to start using it only for your new business. You estimate that the computer is currently worth $300, and you transfer the computer into the business in exchange for additional common stock. (Use "Computer" as the account type)

11/16: The company needs more cash to sustain its operations. Your parents lend the company $5000 cash, in exchange for a two-year, 9% note payable. Interest and the principal are repayable at maturity.

11/17: Your business pays $900 for additional equipment.

11/18: You schedule your first service performance for Nov. 29. You will receive $100 of the date of the service.

11/25: You book a second service performance for Dec 5 for $150. You receive a $60 cash down payment in advance.

11/29: You fulfill the obligations originated on Nov. 18, booked on Nov. 18, and collect the $100 cash.

11/30: Your CMO develop brochures for your business that the company will use for advertising. He charges the company $600 for his work, payable at the end of Dec.

11/30: Your business pays $1,200 for a one-year insurance policy using cash.

11/30: You generate additional service revenue, but your customer cannot pay today in cash. You issue the customer an invoice in the amount of $300. They say it will get paid some time in December.

11/30: You receive a $50 invoice for use of your cell phone. You use the cell phone exclusively for your business. The invoice is for service provided in Nov, and payment is due on Dec 15. (Use Accounts Payable)

12/8: Your company receives a check for the full amount due from the customer for the sale from Nov. 30.

12/9: Your business receives $750, in advance, from customers for services that will be performed during Jan

12/14: You are getting overwhelmed and decide to hire an assistant

12/15: You wait until the last day to finally pay the cell phone invoice outstanding at Nov 30.

12/16: Issue a check to your CMO for the amount owed for the design of the webpage

12/23: Additional revenue during the month amounts to $4000 (You have not had time to account for each service individually.) $3000 in cash has been collected and $1000 is still outstanding. (This is in addition to the December 9 transaction.)

12/23: Additional supplies purchased during the month amount to $1250 cash.

12/28: Pay a dividend of $500 to the common shareholder (Yourself)

12/31: You pay your assistant $8/hour for the amount worked in December. She has worked 4 hours per day for 10 days, since the date of hire.

Additional Information for December is as follows:

1) A count reveals that $82 of your supplies were used

2) Depreciation is recorded on the equipment purchased in Nov. The computer has a useful life of 5 years and the equipment purchased on Nov 17th has a useful life of 10 years. Assume that 2 months´ worth of depreciation if required.

4) Interest on the 9% note payable is accrued. (Assume that 1.5 months of interest accrued during Nov and Dec) Round to nearest dollar

5) One month´s worth of insurance has expired

6) You are unexpectedly telephoned on Dec 28 to perform your service on the last day of December. In early January, your company will send an invoice for $450.

8) A cell phone invoice is received for $75. The invoice is for services provided during the month of Dec and is due on Jan 15 (Use Accounts Payable)

9) Because of the unexpected sale on Dec 31, you recruit you assistant to help you. Your assistant worked 7 hours at a rate of $8 per hour. You´ve already processed payroll for Dec, so your assistant will not actually get paid until next month.

Create the Journal Entries for November and December

Answer 1

Journal Entries for November and December