[The following information applies to the questions displayed below.] Vigeland C

Question

[The following information applies to the questions displayed below.] Vigeland Company completed the following transactions during Year 1. Vigeland’s fiscal year ends on December 31. Jan. 15 Purchased and paid for merchandise. The invoice amount was $15,000; assume a perpetual inventory system. Apr. 1 Borrowed $622,000 from Summit Bank for general use; signed a 10-month, 14% annual interest-bearing note for the money. June 14 Received a $22,000 customer deposit for services to be performed in the future. July 15 Performed $4,650 of the services paid for on June 14. Dec. 12 Received electric bill for $26,960. Vigeland plans to pay the bill in early January. 31 Determined wages of $15,000 were earned but not yet paid on December 31 (disregard payroll taxes).

Required:

1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the adjusting entries required on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

1.

2.

VIGELAND COMPANY Genral Journal for the Year 1 Date Account Debit Credit Jan.15, Year1 Merchandise Inventory 15000 Cash 15000 (To record purchase of merchandise for cash) Apr.1, Year1 Cash 622000 Note Payable 622000 (To record money borrowed onnote payable) June.14, Year1 Cash 22000 Unearned revenue 22000 (To record deposit received from customer for future service) July15, Year1 Unearned Revenue 4650 Service Revenue 4650 (To record service performed against deposit received on June14) Dec.12, Year1 Utility expenses 26960 Accounts payable 26960 (To record electric bill received )

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