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ACCTG 3600 Semester Project VERSION 22 INSTRUCTIONS You are not to work with any other students (current or former) on this project.
2019 TRANSACTION AND EVENT LIST VERSION 22
HINT: Before booking an entry, remember to evaluate the substance of each transaction/event. Do accounting standards require the event or transaction to be booked into your company's accounting records? NOTE: All interest rates included in the transaction list are stated at an annual rate.
January
1. On January 1st, The Board of Directors issued 250,000 additional shares (par of $.25) to raise capital for the New Year. Assume no change in price from Dec 31, 2018.
2. Purchased a truck for $280,000 cash on the 1st of January. The truck will be depreciated over an 5 year period. You decide to use the 200% declining-balance depreciation method because it is determined that the truck will be more productive when it is newer. The truck has an estimated salvage value of $28,000.
[Adjusting Entry Required]
3. Purchased new office equipment for $93,000 with cash from California Furniture on January 1, 2019. The new furniture will be depreciated over a ten-year period on a straight-line basis. The cabinet has an estimated salvage value of $9,000.
[Adjusting Entry Required]
4. On January 1st, a 5 year, $134,000 long-term note payable was taken from a local bank.
5. On January 5th you receive payment from interest earned and accrued in 2018.
6. On January 22nd you purchased 8,500 additional units of inventory at a cost of $76.50 per unit. You paid 45% in cash and purchased the remainder on account.
7. On January 25th you pay $215,000 cash toward your accounts payable.
February
8. Paid cash for $55,900 worth of radio advertising on February 1st. This gives you radio advertising space until January 31st, 2020.
[Adjusting Entry Required]
9. February 13th you collect $356,000 of account payments from customers.
March
10. Purchased a parcel of land on March 1, 2019 for $990,000 by paying $430,000 in cash and signing a short-term note payable with the seller for $560,000. You must repay the $560,000 in exactly one year on March 1, 2020. You agree to pay the seller 5 percent interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2019, and March 1, 2020).
