At January 1 (beginning of its fiscal year), Freeman, Inc., reported the following account balances (in thousands, except for per-share values): Cash Short-term investments Accounts receivable. Supplies Prepaid expenses Office equipment $1,900 410 3,570 150 4,720 1,050 Accounts payable Unearned revenue Salaries payable Short-term note payable Common stock ($1 par value) Additional paid-in capital Retained earnings a. Received $9,500 cash for consulting services rendered. $210 1,320 870 780 50 6,560 2,010
At January 1 (beginning of its fiscal year), Freeman, Inc., reported the following account balances (in thousands, except for per-share values): Cash Short-term investments Accounts receivable. Supplies Prepaid expenses Office equipment $1,900 410 3,570 150 4,720 1,050 Accounts payable Unearned revenue Salaries payable Short-term note payable Common stock ($1 par value) Additional paid-in capital Retained earnings a. Received $9,500 cash for consulting services rendered. $210 1,320 870 780 50 6,560 2,010
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
E3-12 (Static) Recording Journal Entries and Posting Effects to T-Accounts LO3-3, 3-4
At January 1 (beginning of its fiscal year), Freeman, Inc., reported the following account balances (in thousands, except for
per-share values):
Cash
Short-term investments
Accounts receivable
Supplies
Prepaid expenses
Office equipment
$1,900
410
3,570
150
4,720
1,050
E3-12 Part 1
Accounts payable
Unearned revenue
Salaries payable
Short-term note payable
Common stock ($1 par value)
Additional paid-in capital
Retained earnings
$210
1,320
870
780
50
a. Received $9,500 cash for consulting services rendered.
b. Issued 10 additional shares of common stock at a market price of $120 per share.
c. Purchased $640 of office equipment, paying 25% in cash and owing the rest on a short-term note.
d. Received $890 from clients for consulting services to be performed in the next year.
e. Bought $470 of supplies on account.
f. Incurred and paid $1,800 in utilities for the current year.
g. Performed $1,620 of consulting services, due from clients in the next year.
h. Received $2,980 from clients paying on their accounts.
i. Incurred $6,210 in salaries in the current year, paying $5,300 and owing the rest (to be paid next year).
j. Purchased $1,230 in short-term investments and paid $800 for insurance coverage beginning in the next fiscal year.
k. Received $10 in interest revenue earned in the current year on short-term investments.
6,560
2,010
Answer is not complete.
Required:
1. Prepare journal entries for each transaction for the current year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in thousands."
Transcribed Image Text:!
Required information
E3-12 (Static) Recording Journal Entries and Posting Effects to T-Accounts LO3-3, 3-4
At January 1 (beginning of its fiscal year), Freeman, Inc., reported the following account balances (in thousands, except for
per-share values):
Cash
Short-term investments
Accounts receivable
Supplies
Prepaid expenses
Office equipment
$1,900
410
3,570
150
4,720
1,050
E3-12 Part 1
Accounts payable
Unearned revenue
Salaries payable
Short-term note payable
Common stock ($1 par value)
Additional paid-in capital
Retained earnings
$210
1,320
870
780
50
a. Received $9,500 cash for consulting services rendered.
b. Issued 10 additional shares of common stock at a market price of $120 per share.
c. Purchased $640 of office equipment, paying 25% in cash and owing the rest on a short-term note.
d. Received $890 from clients for consulting services to be performed in the next year.
e. Bought $470 of supplies on account.
f. Incurred and paid $1,800 in utilities for the current year.
g. Performed $1,620 of consulting services, due from clients in the next year.
h. Received $2,980 from clients paying on their accounts.
i. Incurred $6,210 in salaries in the current year, paying $5,300 and owing the rest (to be paid next year).
j. Purchased $1,230 in short-term investments and paid $800 for insurance coverage beginning in the next fiscal year.
k. Received $10 in interest revenue earned in the current year on short-term investments.
6,560
2,010
Answer is not complete.
Required:
1. Prepare journal entries for each transaction for the current year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in thousands.
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