Create a journal entry for these transactions:

1.            January 2: The owners invested $200,000 into the business and acquired 25,000 shares of capital stock in return.

2.            January 15: Herman and Sons' took out a note for $80,000 from the bank to finance the purchase of an office building.

3.            January 15: Herman and Sons' bought an office building in the amount of $80,000.

4.            February 12: Herman and Sons' billed clients for $90,000 of services performed.

5.            March 1: Herman and Sons' took out a two-year insurance policy, which it paid cash for in the amount of $18,000.

6.            March 10: Herman collected $12,000 from clients toward the outstanding accounts receivable balance.

7.            May 13: Herman received cash payments totaling $185,000 for legal services—$30,000 was for services previously billed to customers on February 12 and the remainder was for services provided in May not yet recorded.

8.            June 10: Herman purchased office supplies in the amount of $15,000, all of which it paid on credit account with the supplier.

9.            July 15: Herman paid wages of $42,000 in cash to office staff workers.

10.          August 8: Herman paid the $10,000 owed to a supplier for the purchase made on June 10.

11.          September 3: Herman and Sons' purchased $17,000 of office supplies in cash.

12.          September 20: The Company paid $9,000 cash for utilities.

13.          October 1: Herman and Sons' paid wages in the amount of $32,000 to office workers.

14.          December 1: Herman and Sons' received cash payments from clients in the amount of $320,000 for services to be performed in the upcoming months.

15.          December 31: Herman declared and paid a $7,000 dividend.

Answer rating: 100% (QA)

following are the journal entry for the given transactions SlNo Date Particulars Dr Cr 1 January 2 C... View the full answer