Market-Probe a market research firm had the following transactions in june 2014, its first month of operations.
June 1 B.May invested $24000 cash in the firm in exchange for common stock.
1 The firm purchased the following: office equipment, $11040: office supplies, $2840. Terms are $4400 cash with the reminder due in
60 days 2 Paid $875 cash for June rent owed to the landlord 2 Contracted for 3 months advertising in a local newspaper at$310 per month and paid for the advertising in advance. 2 Signed a 6-month contract with a customer to provide
research consulting services at at a rate of $3200 per month. received to months fees in advance. Work on the contract started immediately.
- 10 Billed various customers $5800 for services rendered.
- 12 Paid $3600 cash for two weeks salaries (5day week) to employees
- 15 Paid $1240 cash to employee fro travel expenses
- 18 Paid $520 cash to post office for bulk mailing of research questionnare(postage expense)
- 26 Paid $3600 cash for two weeks salaries to employees
- 28 Billed various customers $5200 for services rendered
- 30 Collected $7800 cash from customers on their accounts
- 30 Paid $1500 cash for dividends
a)Record these transactions using the financial statement effects template
b) prepare adjusting entries using the financial statement effects
template that reflect the following information at June 30,2014:
- -office supplies available, $1530
- -accrued employee salaries, $725
- -estimated life of office equipment is 8 years
Adjusting entrees must also be prepared for advertising and serves fees per information in the June transactions