Reference no: EM132131643

Question - Journalize the transaction

1. Collected $25,000 for services to be provided over the coming year on June 30.

2. Paid $72,000 for a three-year insurance policy on July 10 with coverage beginning on August 1.

3. Incurred legal fees of $6,000 on April 10, but did not pay for these services.

4. Sold land with cost of $100,000 for $120,000 cash on December 1.

5. As of December 31, Plush has not recorded any insurance expense for the year. The only insurance policy it owns is the one purchased in #10 above.

6. Plush depreciates its store equipment at a rate of $8,000 per year. Depreciation expense has not been recorded as of December 31.

7. For the fees collected on June 30 (#9 above), Plush estimated that 30% of the service fees collected in advance had been earned by the end of the year.