Please prepare journal entries round all numbers to a nearest dollar.

Accounting magic was authorized to isssue 3000000 shares of $1 par common stock but has only isssued 650000 shares of common stock as of 12/31/18. No new shares were issued in 2018.

w Selet Styles Editing Based on your review of the cash balances, you note that there was an overdraft of $12,000 in one of your bank accounts. However, there are many bank accounts at the specific bank where the account with the overdraft is deposited. The total cash at this bank equaled a debit balance of $180,000 The previous accountant moved the overdraft to Accounts Payable. You also note the Board of Directors has restricted $65,000 of cash for future expansion This S65000%s part a f the cash balance. The future expansion will not occur for several more y b. Based on your inquiries, you note that $35,000 of accounts receivable had been written off during the year. The clerk had debited bad debt expense for $35,000 and credited Accounts Receivable for $35,000 When $8,500 of accounts previously written off had been collected, the accountant debited cash and credited sales. The company uses the allowance method based on the aging of accounts receivable. Based on this method, Accounting Magic determines that uncollectible accounts are $46,600 at the end of 2018 On April 1, 2018, Accounting Magic renewed a 16-month insurance policy for $15,000 All cash s paid at the time the policy was signed and insurance expense was increased All other transactions involving insurance were properly recorded d. On November 1, 2018, Accounting Magic loaned a key supplier, $25,000. A promissory note was signed and issued. The note is due in full 6-months. The supplier agrees to pay interest on the note at an annual rate of 8% Principle and interest will be paid at the end ofthe 6-months The note was recorded in Notes Receivable and is the only note outstanding e Per a physical count of office supplies, $5,006 of supplies remained at the end of 2018. The balance on the worksheet in the office supplies account represents last years ending balance During the year, $35,000 of office supplies were purchased and immediately expensed campaign of advertising services Equal services are provided each month space so on August 1, 2018 they r f. On November 1, 2018 Accounting Magic paid ABC Advertising $16,000 for a four-month Accounting Magic needed some temporary additional storage ented a unit for an annual rate of $17,000 and they paid the g. Because of a new product line, entire amount up front h The storage building was self-constraucted this year by Accounting Magic . The Company had their I expenditure of $500,000 on January 1. They paid an additional $375,000 on May 1 $250,000 on August 1, and then the final payment of $150,000 on December 1st when the building was completed and occupancy occurred The company has decided to use S/L method for depreciation. The storage building is estimated to have a life of 40 years and a salvage value of $77,006. The company depreciates using partial years (Hint (1) only consider depreciation after the completion of the construction; (2) use the avoidable interest computed from i i. Accounting Magic Double Entry has two loans outstanding as of 12/31/2018. Interest is paid annually on January 1st. The facts on each loan are as follows: Qostat Bank Loan - outstanding since January 1, 2018 with a 40% interest rate This loan was taken out to finance the will be paid to the bank on January 1,2019 Except for recording the initial cash received and loan, no additional entries have been made. Coldsa,Bank Loan-also outstanding all of 2018 with 3 06% interest rate, Interest is due on January 1, 2019. Principle is due on January 1, 2024 Since interest will onstruction of the Storage Building interest for the year and 10% of the principle not be paid to the Bank until 2019, Accounting Magic' office staff did not accrue any interest w Selet Styles Editing Based on your review of the cash balances, you note that there was an overdraft of $12,000 in one of your bank accounts. However, there are many bank accounts at the specific bank where the account with the overdraft is deposited. The total cash at this bank equaled a debit balance of $180,000 The previous accountant moved the overdraft to Accounts Payable. You also note the Board of Directors has restricted $65,000 of cash for future expansion This S65000%s part a f the cash balance. The future expansion will not occur for several more y b. Based on your inquiries, you note that $35,000 of accounts receivable had been written off during the year. The clerk had debited bad debt expense for $35,000 and credited Accounts Receivable for $35,000 When $8,500 of accounts previously written off had been collected, the accountant debited cash and credited sales. The company uses the allowance method based on the aging of accounts receivable. Based on this method, Accounting Magic determines that uncollectible accounts are $46,600 at the end of 2018 On April 1, 2018, Accounting Magic renewed a 16-month insurance policy for $15,000 All cash s paid at the time the policy was signed and insurance expense was increased All other transactions involving insurance were properly recorded d. On November 1, 2018, Accounting Magic loaned a key supplier, $25,000. A promissory note was signed and issued. The note is due in full 6-months. The supplier agrees to pay interest on the note at an annual rate of 8% Principle and interest will be paid at the end ofthe 6-months The note was recorded in Notes Receivable and is the only note outstanding e Per a physical count of office supplies, $5,006 of supplies remained at the end of 2018. The balance on the worksheet in the office supplies account represents last years ending balance During the year, $35,000 of office supplies were purchased and immediately expensed campaign of advertising services Equal services are provided each month space so on August 1, 2018 they r f. On November 1, 2018 Accounting Magic paid ABC Advertising $16,000 for a four-month Accounting Magic needed some temporary additional storage ented a unit for an annual rate of $17,000 and they paid the g. Because of a new product line, entire amount up front h The storage building was self-constraucted this year by Accounting Magic . The Company had their I expenditure of $500,000 on January 1. They paid an additional $375,000 on May 1 $250,000 on August 1, and then the final payment of $150,000 on December 1st when the building was completed and occupancy occurred The company has decided to use S/L method for depreciation. The storage building is estimated to have a life of 40 years and a salvage value of $77,006. The company depreciates using partial years (Hint (1) only consider depreciation after the completion of the construction; (2) use the avoidable interest computed from i i. Accounting Magic Double Entry has two loans outstanding as of 12/31/2018. Interest is paid annually on January 1st. The facts on each loan are as follows: Qostat Bank Loan - outstanding since January 1, 2018 with a 40% interest rate This loan was taken out to finance the will be paid to the bank on January 1,2019 Except for recording the initial cash received and loan, no additional entries have been made. Coldsa,Bank Loan-also outstanding all of 2018 with 3 06% interest rate, Interest is due on January 1, 2019. Principle is due on January 1, 2024 Since interest will onstruction of the Storage Building interest for the year and 10% of the principle not be paid to the Bank until 2019, Accounting Magic' office staff did not accrue any interest