Vigeland Company completed the following transactions during 2011. The annual accounting period ends December 31, 2011.
Jan. 15 Purchased and paid for merchandise for resale at an invoice cost of $14,200; periodic inventory system.
Apr. 1 Borrowed $700,000 from Summit Bank for general use; executed a 10-month, 8 percent interest-bearing note payable.
June 14 Received a $15,000 customer deposit from Mark Muller for services to be performed in the future.
July 15 Performed $3,750 of the services paid for by Mr. Muller.
Dec. 12 Received electric bill for $27,860. The company will pay it in early January.
31 Determined wages of $15,000 earned but not yet paid on December 31 (disregard payroll taxes).
Required:
1. Prepare journal entries for each of these transactions.
2. Prepare all adjusting entries required on December 31, 2011.