Accrual based accounting Current date: Jan 1 2012 Annual report ending December

Question

Accrual based accounting
Current date: Jan 1 2012
Annual report ending December 31,2011

QUESTIONS

a.borrowed $12,000 in cash on a 5 year, 10 percent notes payable, dated March 1, 2012
c. Earned $208,000 in revenues for 2012, including $52,000 on credit and the rest in cash.
d. Sold 4,000 additional shares of capital stock for cash at $1 market value per share on Jan 1, 2012
e.incurred $111,000 in remaining expense for 2012 including $20,000 on credit and the rest paid in cash.
i. Purchased supplies on account for future use, $23,000.
j. Signed a three year $33,000 service contract to start february 1, 2013.
k. Declared and paid cash dividend, $22,000.

MY UNSURE ANSWERS
a. Dr cash $12,000
Dr interest expense $1200
Cr longterm not payable $12,000
Cr interest payable $1200

c. Dr cash $156,000
Dr account receivable $52,000
Cr service revenue $208,000

d. Dr cash $4000
Cr contributed capital $4000

e. Cr account payable $111,000
Dr remaining expense $111,000

i. Dr supplies $23,000
Cr account payable $23,000

j. No transaction

k. Cr cash $22,000
Dr retained earnings $22,000

I have been working on this very hard but now that i attempted to do the income statement, my net income did not meet the checkpoint my teacher gave us. Please help.

Explanation / Answer

following were the points which you did wrong.

here are my suggesions.

(if it is loan in 2011 means accounting period then charge interest only for 10 months i.e $1000)
interest will be charged annually so do not include it here for year and not paid so it'll be like this.
you are making statement for 2011 so no need for interest it will be in 2012
a. Dr cash $12,000

Cr long term not payable $12,000


c.
Dr cash $156,000
Dr account receivable $52,000
Cr service revenue $208,000

e. Cr account payable $20,000
cr cash 91000
Dr remaining expense $111,000

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