Assume the following transactions occurred during the year. The annual accounting period ends on December 31.
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Jan. 15
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Purchased and paid for merchandise for resale at an invoice cost of $15,600. A periodic inventory system is used.
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Apr. 1
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Borrowed $800,000 from a bank for general use, executing a one-year, 5% note payable
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June 14
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Received a $12,000 customer deposit for services to be performed in the future.
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July 15
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Performed $4,250 of the services paid for on June 14.
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Dec. 15
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Received an electric bill for $25,680. The bill will be paid in early January.
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Dec. 31
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Determined wages owed to employees to be $13,500 that will be paid on January 2.
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Required:
- Prepare journal entries for each of the transactions listed.
- Prepare any required adjusting entries on December 31.