Journalize the transactions below.
(Jan 2) Each of the five owners purchased 50,000 shares of ZG, Inc. $1 par common stock for $150,000 each.
(Jan 3) ZG, Inc. rents a building for $4,000 per month by paying $80,000 up front to get a special, low rate.
(Jan 4) ZG, Inc. invests in office equipment of $100,000. The office equipment is expected to last for 8 years.
(Jan 5) ZG, Inc. purchases a two-year liability insurance policy for $36,000.
(Jan 15) Office and cleaning supplies are purchased for $2,000
(Feb 1) Inventory is purchased for $100,000 representing 200,000 units of product.
(Feb 15) A sale of 15,000 units is made for $60,000 is made on account
(Mar 15) The sale of Feb 15 is collected in cash.
(March 30) A sale of 30,000 cans is made for $120,000 is made on account.
(Apr 15) Half of the March 30 sale is returned and the balance is received in cash
((April 1) Salaries are paid in the amount of $30,000.
April 15) Training for the sales force is paid for $15,000
(April 30) The company borrows $30,000 by signing a note at the bank
(May 1) Advertising is paid for $60,000 that will run for the rest of the year.
(May 30) Utilities expense is paid in the amount of $3,500.
(June 31) Maintenance expense is paid for repairs on the office equipment $5,000.
(October 31) Travel expense to visit the supplier’s site and test the quality of the product costs $3,500.
(Nov 30) Sales are made for 14,000 cans for $56,000.
(Dec 31) Bonuses are paid for $25,000.
Journalize and post these adjustments in the journal and the ledger.
At December 31, the inventory counts show only $500 in office supplies remaining.
The inventory count shows $5,000 in inventory remaining.
Adjust the prepaid rent using a rent expense account.
Adjust the prepaid insurance using an insurance expense account.
Calculate an appropriate depreciation expense entry.
Accrue interest expense at 6% on the loan
Accrue utilities expense for $1,000 that will be paid in January of next year.