Here are selected $2024$ transactions for $MGM$ Corporation. $MGM$ uses the straight$-$line method $of$ depreciation and practises accrual accounting.

$MGM$ prepares adjustments $to$ its accounting records $at$ year$-$end.

$1OI-$Jan Received $$40,000in$ cash from stockholders investing $in$ the company.

$28-$Feb Sold land for $$1,600,000.$ The land cost$$1,000,000.$

$01-$Jun Purchased equipment for $$55,000,$ paying $$3,500in$ cash and signing $a30-$day note payable for the remainder.

The equipment has $an$ expected useful life $of7$ years and $a$ $$4,000$ salvage value.

$01-$Jul Paid the note payable.

$30-$Nov Performed $$200,000$ worth $of$ services for customers who had already paid $in$ advance last year.

$15-$Dec Ordered goods costing $$7,000on$ account. The goods were shipped FOB shipping point $on$ December $27th.MGM$ received the goods

$on$ January $5th,2025.$

$In$ addition, the following aging schedule $is$ available for $MGM$ Company.

Accounts receivable

Total

Not Yet Due

Number $of$ Days Past Due