The Vigeland Company completed the following transactions during year 1. Vigeland's fiscal year ends on December 31.
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Question:
The Vigeland Company completed the following transactions during year 1. Vigeland's fiscal year ends on December 31.
Jan. | 15 | Merchandise purchased and paid for. The invoice amount was $14,800; Assume a perpetual inventory system. | |
Apr. | 1 | Borrowed $780,000 from Summit Bank for general use; signed a 10-month 9% annual interest promissory note for the money. | |
June | 14 | Received a client deposit of $18,000 for services to be performed in the future. | |
July | 15 | Made $4,550 of services paid for on June 14. | |
Dec. | 12 | Electric bill received for $26,760. Vigeland plans to pay the bill in early January. | |
31 | Determined wages of $28,000 were earned but not yet paid as of December 31 (disregarding employment taxes) |
Required
1) Prepare journal entries for each of these transactions.
2) Prepare the required adjusting entries on December 31.
Related Book For
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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