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BUSINESS TRANSACTIONS for the Month of December.

1) 12-1 The Shark Corp Received $220,000 from SJ Sharkie in exchange for 5,000 shares of Common Stock.

2) 12-2 The Shark Corp Borrowed $45,000 from Wells Fargo Bank and signed a Note.

3) 12-3 The Shark Corp purchased Office Furniture for $120,000(5 year life), on account from IKEA..

4) 12-4 The Shark Corp purchased Computer Equipment for $60,000(5 year life), on account from Office Depot

5) 12-5 The Shark Corp paid $18,000 with Check#101 for Corporate Insurance for the next 12 months.(Dec-Nov)

6) 12-10 The Shark Corp paid $20,000 with Check#102 for December Rent.

7) 12-11 The Shark Corp provided a mascot Seminar for the NIKE Corp and Billed Nike $120,000 on account.

8) 12-15 The Shark Corp received the December Utility Bill from PGE in the amount of $5,000 to be paid in Jan.

9) 12-16 The Shark Corp received the December Telephone Bill from SBC for $6,000 to be paid Later.

10) 12-17 The Shark Corp received a $70,000 Check from Nike Corp on account for services previously provided.

11) 12-20 The Shark Corp paid $10,000 with check #103 to Mark's Marketing for Professional Fees Expense.

12) 12-25 The Shark Corp paid $44,000 with Check #104 for December Salary expenses.

13) 12-27 The Shark Corp received a $25,000 Check from Buick Corp for services to be provided in January.

14) 12-28 The Shark Corp Paid $120,000 with Check#105 to IKEA Corp for the Office Furniture purchased above.

15) 12-29 The Shark Corp Paid $6,000 with Check #106 to SBC on account for the Telephone Bill.

16) 12-30 The Shark Corp Paid $12,000 with Check#107 to Mr. SJ Sharkie for Dividends to the owner.

17) 12-30 The Shark Corp paid $3,000 with check #108 to WF Bank on the note, $1,000 was for Interest Expense.

18) 12-31 The Shark Corp recorded one Month of Insurance expense from the Prepaid Insurance account.

19) 12-31 The Shark Corp recorded one Month of Depreciation Expense on the Furniture and the Computer Equip.

20) 12-31 The Shark Corp recorded Income Tax Payable and Income Tax Expense for December, which is 40% of Net Income (Taxes to be discussed in class)

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Above are the transactions I need to journalize. Below, I have answers for all of them except #19 and #20, as I am confused as to how you get the value of one-month depreciation expenses for furniture and comp. equipment. Please explain how to do #19, as well as 20, and correct my answers if they're wrong.

Date Account Description Debit Credit

1-Dec Cash 220,000

Common Stock 5,000

2-Dec Cash 45,000

Notes Payable - Wells Fargo 45,000

3-Dec Office Furniture 120,000

Accounts Payable - IKEA 120,000

4-Dec Computer Equipment 60,000

Accounts Payable - Office Depot 60,000

5-Dec Prepaid Insurance 18,000

Cash 18,000

10-Dec Rent Expense 20,000

Cash 20,000

11-Dec Accounts Receivable 120,000

Service Revenue 120,000

15-Dec Utility Expense 5,000

Utilities Payable 5,000

16-Dec Telephone Bill Expenses 6,000

Telephone Bill Payable 6,000

17-Dec Cash 70,000

Accounts Receivable 70,000

20-Dec Professional Fees Expense 10,000

Cash 10,000

25-Dec Salary Expenses 44,000

Cash 44,000

27-Dec Cash 25,000

Unearned Service Revenue 25,000

28-Dec Accounts Payable - IKEA 120,000

Cash 120,000

29-Dec Telephone Bill Payable 6,000

Cash 6,000

30-Dec Dividends 12,000

Cash 12,000

30-Dec Notes Payable - Wells Fargo 2,000

Interest Expense 1,000

Cash 3,000

31-Dec Insurance Expense ($18,000/12m) 1,500

Prepaid Insurance 1,500

31-Dec Depreciation Expenses ?

Accumulated Depreciation - Furniture ?

Accumulated Depreciation - Office Equipment ?

Answer & Explanation Solved by verified expert

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