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Listed below are the transactions of The Wake Up Call Coffee Inc. for the month of September,2012. ??? Sept 1 ? ? Shareholders of Wake Up Call Coffee Inc. invest additional $30,000 cash. 1 Borrows $30,000 from Bank of America. Interest is paid on a semi-annual basis. ? 2 ? Purchases equipment on account from Chicory Co. for $ 15,280. 3 Pays annual rent for office space of $12,000. ? 3 ? Prepays advertising expense of $2,400. The contract provides for 6 month advertising. 4 Employs a receptionist. ? 5 Purchases supplies for cash, $600 ? 8 Receives cash of $1,690 from clients for services performed. ? 10 ? Pays miscellaneous office expenses, $430 14 Bills clients $3,820 for services performed. ? 18 ? Pays Chicory Co. on account, $3,600. 20 ? Receives $980 from clients on account. 23 Receives $500 from clients in advance. Coffee catering service will be performed next month. ? 25 ? Bills customers $2,110 for services performed. ??30 ?Pays the following expenses in cash: Salaries and wages $1,800; miscellaneous office expenses $85. First part of cycle problem a. Journalize the transactions above and post them to the appropriate general ledger accounts . You may set up additional T-accounts as appropriate.
The accountant for the Orion Sales Company is preparing the income statement for 2007 and the balance sheet at December 31, 2007. Orion uses the periodic inventory system. The January 1, 2007 merchandise inventory balance will appear:
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