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  3. 1dec borrow 10000 from the local bank and sign a...

Question: 1dec borrow 10000 from the local bank and sign a...

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1-Dec Borrow $10,000 from the local bank and sign a note promising to repay the full amount of the debt in three years 1-Dec Pay one year of rent in advance, $6,000 ($500 per month) 6-Dec Purchase supplies on account, $2,300 17-Dec Provide soccer training to customers on account, $2,000 23-Dec Receive cash in advance for 12 soccer training sessions to be given in the future, $600 1. One month rent has expired 2. Physical cound of supplies reveals that only $1,300 of supplies remains 3. one month of the equipments use has expired (depreciation expense $400) 4. $200 of services have been provided. Related to Dec. 23 advance payament 5. $300 in salaries have been earned by employees for the final three days of the month 6. utilities costs of $900 have been incurred but have not been paid , one month of interest has been charged for borrowing $10,000 at 12% interest (. $10,000 x 12X> 1/ 12) 8. services of $700 have been provided to customers but have not yet been billed
Chapter 3- The Accounting Cycle: End of the Period Exercise 3-20 (Lo 3-3, 3-4, 3-5,3-6,3-7) Requirement 1 February 15 Debit Credit ash 20,000 Common Stock (Issue shares of common stock) 20,000 May 20 2. Cash 35,000 30,000 Accounts Receivable Service Revenue (Provide services to customers for cash and on account) 65,000 August 31 3. Salaries Expense 23,000 Cash (Pay salaries to employees) 23,000 October 1 4 Prepaid Rent 12,000 Cash (Pay for one-year of rental space) 12,000 November 17 s Supplies 22,000 Accounts Payable (Purchase supplies on account) 22,000 December 30 6. Dividends 2,000 Cash (Pay dividends) 2,000
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