Suppose following transactions occurred during year the

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Assume the following transactions occurred during the year. The annual accounting period ends on December 31.

Jan. 15

Purchased and paid for merchandise for resale at an invoice cost of $15,600. A periodic inventory system is used.

Apr. 1

Borrowed $800,000 from a bank for general use, executing a one-year, 5% note payable

June 14

Received a $12,000 customer deposit for services to be performed in the future.

July 15

Performed $4,250 of the services paid for on June 14.

Dec. 15

Received an electric bill for $25,680. The bill will be paid in early January.

Dec. 31

 

Determined wages owed to employees to be $13,500 that will be paid on January 2.

Required:

Prepare journal entries for each of the transactions listed.

Prepare any required adjusting entries on December 31.

Reference no: EM13472626

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