How would I post these to the general journal? Investors provided $12,000,000 of

Question

How would I post these to the general journal? Investors provided $12,000,000 of cash in exchange for stock of The Wild Corporation. Purchased equipment in exchange for $500,000 cash and a $1,500,000 note payableat an annual rate of 12%, payable every 6 months. Jan. 1 Jan. 1 Purchased $60,000 of insurance that will cover the next 4 years. This was recorded as prepaid insurance. Purchased $12,000 of office supplies on account that will be needed during Jan. 1 Feb. 1 the upcoming year Mar. 15 Paid Salaries of $25,000 Mar. 31Billed customers for services in the amount of $100,000. Apr. 15 Paid the vendor who sold Wild the office supplies on Feb. 1. Apr. 30 Collected $75,000 on accounts receivable. June 15 Paid salaries of $30,000. June 30 Paid $5,000 for hotel costs. June 30 Paid $13,000 for transportation costs incurred by staff. June 30 Paid the interest due and $150,000 to reduce the balance of the note July 1 Aug 1 Aug. 15 Sept. 15 Sept. 30 Sept. 30 Dec. 1 payable. Billed customers for services provided in the amount of $340,000. Collected $110,000 on accounts receivable. Purchased $12,000 of office supplies on account Paid salaries of $30,000 Paid $14,000 for transportation costs. Paid $23,000 for hotel costs incurred by staff. Collected $195,000 as deposits from customers who contracted for 2019. Dec. 31 Declared and paid a $36,000 dividend to shareholders.

Explanation / Answer

The Wild Corporation

Journal Entries –

Journal Entries-

Date

Account Titles and Explanation

Debit

Credit

1-Jan

cash

$12,000,000

Common Stock

$12,000,000

(To record issue of stock)

1-Jan

Equipment

$2,000,000

cash

$500,000

Notes Payable

$1,500,000

(To record purchase of equipment partly by cash and partly by issue of notes payable)

1-Jan

Prepaid Insurance

$60,000

cash

$60,000

(Purchase of insurance to provide coverage for 4 years)

1-Feb

Office Supplies

$12,000

Accounts Payable

$12,000

(

(To record purchases of office supplies on account)

15-Mar

Salaries Expense

$25,000

cash

$25,000

(To record salaries paid)

31-Mar

Accounts Receivable

$100,000

Sales Revenue

$100,000

(to record customers billed for services rendered)

15-Apr

Accounts Payable

$12,000

cash

$12,000

(To record payment towards office supplies purchased on Feb 1)

30-Apr

cash

$75,000

Accounts Receivable

$75,000

(To record collections against accounts receivables)

15-Jun

Salaries Expense

$15,000

cash

$15,000

(To record payment of salaries)

30-Jun

Hotel Expense

$5,000

cash

$5,000

(To record hotel costs)

30-Jun

Travel Expenses

$13,000

cash

$13,000

(To record travel expenses)

1-Jul

Accounts Receivable

$340,000

Service Revenue

$340,000

(to record customers billed for services rendered)

1-Aug

cash

$110,000

Accounts Receivable

$110,000

(To record collections against accounts receivables)

15-Aug

Office Supplies

$12,000

Accounts Payable

$12,000

(To record purchase of office supplies on account)

15-Sep

Salaries Expense

$30,000

cash

$30,000

(To record salaries paid)

30-Sep

Travel Expenses

$14,000

cash

$14,000

(To record travel cost of employees)

30-Sep

Hotel Expense

$23,000

cash

$23,000

(To record hotel costs of employees)

1-Dec

cash

$195,000

Unearned Revenue

$195,000

(To record customer deposits received for a future contract)

31-Dec

Dividends

$36,000

cash

$36,000

(To record dividends paid)

Journal Entries-

Date

Account Titles and Explanation

Debit

Credit

1-Jan

cash

$12,000,000

Common Stock

$12,000,000

(To record issue of stock)

1-Jan

Equipment

$2,000,000

cash

$500,000

Notes Payable

$1,500,000

(To record purchase of equipment partly by cash and partly by issue of notes payable)

1-Jan

Prepaid Insurance

$60,000

cash

$60,000

(Purchase of insurance to provide coverage for 4 years)

1-Feb

Office Supplies

$12,000

Accounts Payable

$12,000

(

(To record purchases of office supplies on account)

15-Mar

Salaries Expense

$25,000

cash

$25,000

(To record salaries paid)

31-Mar

Accounts Receivable

$100,000

Sales Revenue

$100,000

(to record customers billed for services rendered)

15-Apr

Accounts Payable

$12,000

cash

$12,000

(To record payment towards office supplies purchased on Feb 1)

30-Apr

cash

$75,000

Accounts Receivable

$75,000

(To record collections against accounts receivables)

15-Jun

Salaries Expense

$15,000

cash

$15,000

(To record payment of salaries)

30-Jun

Hotel Expense

$5,000

cash

$5,000

(To record hotel costs)

30-Jun

Travel Expenses

$13,000

cash

$13,000

(To record travel expenses)

1-Jul

Accounts Receivable

$340,000

Service Revenue

$340,000

(to record customers billed for services rendered)

1-Aug

cash

$110,000

Accounts Receivable

$110,000

(To record collections against accounts receivables)

15-Aug

Office Supplies

$12,000

Accounts Payable

$12,000

(To record purchase of office supplies on account)

15-Sep

Salaries Expense

$30,000

cash

$30,000

(To record salaries paid)

30-Sep

Travel Expenses

$14,000

cash

$14,000

(To record travel cost of employees)

30-Sep

Hotel Expense

$23,000

cash

$23,000

(To record hotel costs of employees)

1-Dec

cash

$195,000

Unearned Revenue

$195,000

(To record customer deposits received for a future contract)

31-Dec

Dividends

$36,000

cash

$36,000

(To record dividends paid)

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