Question

On the designated worksheet, prepare in journal entry form all adjusting and correcting journal entries based on the following information (round all numbers to the nearest dollar). Letter entries to correspond to the below information and present them in alphabetical order. Add any new accounts as needed to the trial balance. Each entry must be entirely correct to receive allocated points. Before preparing entries, finish the story by filling in the blanks.

Accounting Creations was authorized to issue 3,000,000 shares of $1 par Common Stock but has only issued 650,000 shares of common stock as of 12/31/2018.  No new shares were issued during 2018.

E.) Per a physical count of office supplies, $5,553 (enter the last three digits of your student number) of supplies remained at the end of 2018. The balance on the worksheet in the office supplies account represents last years ending balance. During the year, $35,000 of office supplies were purchased and immediately expensed.

F.) On November 1, 2018 Accounting Creations paid ABC Advertising $16,000 for a four month campaign of advertising services. Equal services are provided each month.

G.) Because of a new product line, Accounting Creations needed some temporary additional storage space so on April 1, 2018 they rented a unit for an annual rate of $17,000 and they paid the entire amount up front.

H.) The storage building was self-constructed this year by Accounting Creations. The Company had their initial expenditure of $500,000 on January 1. They paid an additional $375,000 on May 1^st, $250,000 on August 1^st, and then the final payment of $150,000 on December 1^st when the building was completed and occupancy occurred. The company has decided to use S/L method for depreciation. The storage building is estimated to have a life of 40 years and a salvage value of $71,553. (Enter the last four digits of your student number.)   The company depreciates using partial years.

Answer 1