Herman and Sons Law Offices opened on January 1, 2015. During the first year of business, the
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€¢ January 2: The owners invested $ 250,000 (the par value of the stock) into the business and acquired 25,000 shares of common stock in return.
€¢ January 15: Herman and Sons€™ bought an office building in the amount of $ 80,000. The company took out a long- term note from the bank to finance the purchase.
€¢ February 12: Herman and Sons€™ billed clients for $ 60,000 of services performed.
€¢ March 1: Herman and Sons€™ took out a two- year insurance policy, which it paid cash for in the amount of $ 22,000.
€¢ March 10: Herman collected $ 20,000 from clients toward the outstanding accounts receivable balance.
€¢ May 13: Herman received cash payments totaling $ 210,000 for legal services€”$ 40,000 was for services previously billed to customers on February 12 and the remainder was for services provided in May not yet recorded.
€¢ June 10: Herman purchased office supplies in the amount of $ 35,000, all on credit.
€¢ July 15: Herman paid wages of $ 16,000 in cash to office staff workers.
€¢ August 8: Herman paid off the $ 35,000 balance owed to a supplier for the purchase made on June 10.
€¢ September 3: Herman and Sons€™ purchased $ 25,000 of office supplies in cash.
€¢ September 20: The Company paid $ 11,000 cash for utilities.
€¢ October 1: Herman and Sons€™ paid wages in the amount of $ 24,000 to office workers.
€¢ December 1: Herman and Sons€™ received cash payments from clients in the amount of $ 320,000 for ser-vices to be performed in the upcoming months.
€¢ December 31: Herman declared and paid a $ 10,000 dividend.
The chart of accounts used by Herman and Sons€™ Law Offices is as follows:
Required
a. Journalize the transactions for the year.
b. Post the journal entries to the general ledger.
c. Prepare an unadjusted trial balance as of December 31.
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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