Need some assistance logging these scenarios in a journal entry.April 2:The firm signed an agreement with a contractor to install shelves costing $18,000. The work will begin on April 4.Purchased a delivery truck by paying $1,000 and taking out a 5 year 12% loan for $24,000.Mark used the company's funds to purchase additional equipment costing $22,000 and furniture and fixtures costing $38,000. It was necessary to pay a computer consultant $4000 to install, configure, and test the equipment prior to its use.April 3:The company borrowed $100,000 from Mark by signing a five-year promissory note at 12% (ignore the interest for now)The company purchased a business health license from the county at a cost of $2,400. The license expires one year from now. April 8:Work on the leasehold improvements was finished and the contractor was paid $18,000.April 15:Sales for the first half of the month totaled $42,000, of which $18,000 was for cash and the remainder on account. The cost of the inventory sold was $20,800.April 28:The company signed a contract with Enterprise Ads to do all its local promotions. The contract length is 12 months beginning May 1st. The company is committed to purchasing $20,000 of advertising time over the 12 month period. In addition, the company must give the agency a $5000 cash retainer when the contract takes effect.

The question is related to the Journal entries for the transactions for the month of April.

Answered: Need some assistance logging these…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Need some assistance logging these scenarios in a journal entry.

April 2:

The firm signed an agreement with a contractor to install shelves costing $18,000. The work will begin on April 4.
Purchased a delivery truck by paying $1,000 and taking out a 5 year 12% loan for $24,000.
Mark used the company's funds to purchase additional equipment costing $22,000 and furniture and fixtures costing $38,000. It was necessary to pay a computer consultant $4000 to install, configure, and test the equipment prior to its use.

April 3:

The company borrowed $100,000 from Mark by signing a five-year promissory note at 12% (ignore the interest for now)
The company purchased a business health license from the county at a cost of $2,400. The license expires one year from now.

April 8:

Work on the leasehold improvements was finished and the contractor was paid $18,000.

April 15:

Sales for the first half of the month totaled $42,000, of which $18,000 was for cash and the remainder on account. The cost of the inventory sold was $20,800.

April 28:

The company signed a contract with Enterprise Ads to do all its local promotions. The contract length is 12 months beginning May 1st. The company is committed to purchasing $20,000 of advertising time over the 12 month period. In addition, the company must give the agency a $5000 cash retainer when the contract takes effect.

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