Each part of the comprehensive problem is based on Big Marker (www.bigmarkcr.com
ID: 2485695 • Letter: E
Question
Each part of the comprehensive problem is based on Big Marker (www.bigmarkcr.com). Consider the narrative in Part 1 as necessary in responding to the following questions on business processes. Consider the following transactions from Big Marker's accounting information system. Accrued one month's interest on an existing note payable. $300. Billed 30 communities for monthly dues of $600. Borrowed $10,000 from First National Bank with a 6-month. 4% note payable. Created a Chief Financial Officer position and established a support team for that function. The CFO's annual salary will be $150,000; each support team member will earn $60,000 annually. Depreciated computer servers, $8,000. Hired a new employee for the Development Team. The new employee's salary will be $45. (XX) annually. Paid six months' rent in advance, $12,000. Purchased new computer servers from Dell. $40,000. Reimbursed employees for business expenses: Supplies. $500. Travel, $ 1,500. j. Took an inventory of supplies on hand, which revealed $450 supplies used.Explanation / Answer
Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Interest Expenses Dr. 300 To Interest Payable 300 b Accounts receivables Dr. 600 To Service Income 600 c Cash Dr. 10000 To Notes Payables 10000 d No entry e. Depreciation Exp. Dr. 8000 To Accumulated Dep. - Computers 8000 f No entry g Prepaid Rent Dr. 12000 To Cash 12000 h Computer Dr. 40000 To Acounts Payable / Cash 40000 i Supplies Exp. Dr. 500 Travelling Exp. Dr. 1500 To Cash 2000 j Supplies Exp. Dr. 450 To Supplies Inventory 450
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