Question: The Problem Solvers Consulting Corporation began business in 2010 The

The Problem Solvers Consulting Corporation began business in 2010. The following transactions took place during January:
January 1 The owners invested $75,000 in exchange for common stock.
1 The company borrowed $10,000 from a local bank with a 3% note and a six-month term. Both the principal and interest will be repaid in six months.
1 The company purchased computer equipment for $13,200 cash. It should last four years, with no residual value.
6 Supplies were purchased on account for $500.
8 Office rent of $700 for January was paid in cash.
20 The company received $3,150 from a customer for services to be performed in February.
31 Consulting services performed during January on account totaled $12,000.
31 The company paid salaries of $6,500 to employees.
31 The company paid $300 to the supplies vendor as part of the $500 owed to the vendor from the purchase on January 6. The company only paid part of the invoice because it only used $300 worth of the supplies in January.

Give the journal entry for each transaction. Provide the reason for each entry. Then, make the necessary adjusting entries at January 31, 2010. What else should be done to finish the accounting cycle for the month?

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  • CreatedSeptember 01, 2014
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