Reference no: EM132979663

Problem 1: Make journal entry for each of this and T-account

a. Issued 1,000 shares of common stock for $10,000.

b. Purchased a zero coupon corporate bond for $1,500.

c. Paid $ 4,800 for vehicles (estimated useful life of 8 years with no estimated salvage value).

d. Performed 500 hours of work at an hourly rate of $45 charged to customers on account.

e. Employees operating job sites worked a total of 850 hours and receive $13 an hour (ignore payroll taxes).

f. Paid $950 in administrative expenses.

g. Incurred $5,100 of disposal expenses on account.

h. Collected $19,000 of accounts receivable.

i. Paid $ 9,500 of wages payable.

j. Paid $ 4,000 of accounts payable for disposal costs

Information:

1. The bond has a 4-year maturity and the market rate of interest when the company acquired the bond was 5.92% (i.e., the face value of the bond is $2,000). Assume the bond was purchased on 1/1/Year 1.
2. Assume the company's tax rate is 25%.
3. The company declared a dividend of $200 but has not yet paid this dividend to investor