how would i write down these intojournal entries?
1. On February3, 2017, FCM signed an agreement with Deion Sanders to providemedia consulting for his football camp. On December 1, FCMcompleted some of the work for Sanders, and issued an invoice for$15,000. Full payment was received on January 15, 2018. Note: theproject did not involve video production.
2. On December1, to prepare for expansion, FCM issued 1,000 shares of stock for$90 per share and signed a $20,000 note to Wells Fargo that is dueNovember 20, 2022. The note carries a 4.5% annual rate of interestwhich is to be paid semi-annually so the first interest paymentwill be made May 31, 2018. (Do not forget to record accruedinterest at the end of the year). On December 3, FCM purchased landfor $100,000 on which to build a 4,000 sq. ft. facility.
3. On November15, 2017, FCM sent an invoice for $170,000 to the LivestrongFoundation for creating a promotional video. On December 2, FCMreceived the $170,000 payment from the Livestrong Foundation
4. On November30, 2017, FCM purchased, received, and recorded $4,000 of suppliesfrom VimBoot on account. On December 4, FCM paid VimBoot for thesupplies purchased the previous month.
5. On November30, 2017, FCM accrued $230 for that month’s AT&T Internet andtelephone bill. That ATT&T bill was paid on December 5.
6. FCM recorded the purchase of a $1,600 insurance policy on May 31,2017, for coverage from June 6 through December 6, 2017. No otherentries related to this insurance policy have been made. FCMpurchased a new 365-day policy on December 6 for $2,920 cash.
7. On December7, NBC Sports contacted FCM about a potential video project. OnDecember 15, FCM paid $1,000 to a consultant to gather focus groupsto determine if there was sufficient demand for the project NBCSports proposed. On December 30, the consultant provided TCM withthe report discussing the results of the focus groups.
8. On December11, FCM purchased two computers from Dell Inc. for $4,900 each. FCMpaid $500 down with a check; the remaining balance is due in 30days (n/30). The computers have an estimated life of three yearsand a salvage value of $50 each.
9. On December12, an invoice in the amount of $120 was received from FedEx fortransportation-in on the computers purchased on December 11. Theinvoice was paid the same day by check.
10. On December 15, a $55,000 socialmarketing project was completed for JonyJones. The invoice was sentwith a due date of January 25, 2018. FCM failed to recordtransaction on this date.
11. On August 1, 2017, a $12,000contract was signed for a social marketing project with OutrightFitness and FCM received the full payment on that date. On December17, FCM completed the project for Outright Fitness.
12. On December 18, FCM had anunpleasant communication with O-Dij-Games, a company producingon-line video games and a long-time customer of FCM. O-Dij-Gameshad recently difficulties with revenue generation and financing.O-Dij-Games’ management expresses an unwillingness to pay FMC theremaining $1,500 due to FMC because of dissatisfaction with theoutcomes from FCM’s social media campaigns. O-Dij-Games indicatedits intention to never use FMC services in the future. FCM wroteoff the O-Dij-Games’ outstanding balance. FCM uses the allowancemethod for bad debts.
13. On December 19, FCM received$28,000 payment for a promotional project that was completed forChuck Nash Chevy in October 2017. The receivable had been recordedupon completion of the project.
14. On November 22, FCM borrowed$15,000 on a 5%, 30-day note from SocialVid Consulting. No intereston this note has yet been accrued. On December 22, FCM repaid thenote and interest.
15. On December 22, FCM issued a $340check to reimburse an employee for travelling to Houston to make apresentation to potential customers.
16. On December 29, supplies of $900were purchased on account (n/30) and delivered.
17. A cash dividend of $9,700 wasdeclared and paid on December 30.
18. Beginning in April 2017, FCMperformed a variety of social media services for Art Unlimited overa period of six months. Art Unlimited failed to make its lastpayment of $11,000, which was due November 15, 2017, because it waswaiting for money to be transferred to it from a related artfoundation. On December 31, FCM allowed Art Unlimited to replaceits account receivable with a six-month note receivable due June30, 2018; the note carries a 5% interest rate.
19. All six FCM employees are monthlypaid. Wages and Salary Expense for December 2017 was $9,180, whichwill be paid on January 2, 2018.
FCM used the followinginformation to make adjusting entries:
20. A physical count of suppliesindicated that, as of December 31, 2017, $800 worth of supplieswere on hand.
21. On December 31, the marketingproject for JonyJones that had not been recorded is identified andrecorded.
22. On November 1, YMCA-Austin begannegotiations with FCM for $42,000 of video production services. FCMwould perform the video production services for YMCA-Austin over a12-month period. FCM signed the contract on December 1, 2017 andbegan shooting immediately. Payments for the work are to be spreadevenly throughout the 12-month period, with FCM billing YMCA-Austinon the last day of every month. The check for December’s work forYMCA was not received until January 1st, 2018.
23. December 2017’s electricity billof $100 was accrued on December 31 but was received and paid onJanuary 2nd, 2018.
24. December’s Internet and telephonebill of $230 was accrued at month end and paid on January 3,2018.
25. Make the adjusting entry necessaryto record depreciation expense for all of 2017. Your assistant hascalculated depreciation for the year, as shown in in the “ExtraInfo” tab. FCM’s management has decided that a full month ofdepreciation is recorded if an asset is held for 15 days or more;if the asset is used less than 15 days in a month, no depreciationis recognized. For example, the equipment acquired on March 19 isdepreciated as if it had been purchased bought on April 1. Acomputer sold on November 11 is depreciated as if it had only beenused until October 31.
26. A lease payment of $6,000 forrenting the office was made on November 1, 2017, for rental throughOctober 31, 2018. The asset account was properly adjusted forNovember. The cost of leasing the office needs to be made forDecember 2017.
27. The Allowance for DoubtfulAccounts should be established at 1% of Accounts Receivable as ofDecember 31, 2017. Compute the balance after making the Decemberadjusting entries.
28. During 2017, there were four notespayable outstanding (the three indicated below and the one repaidon December 22). Interest for two of these notes (SnapCut andWestBestVideo) is paid at maturity; interest on the Wells Fargonote is paid semiannually. Proper accruals of the interest for thethree notes below were made as of November 30, 2017. Interest forDecember 2017 for these three notes needs to be recorded.
Your assistantcalculated interest for December 2017 below:
SnapCut Inc., 6%, 6 months, due Feb. 28, 2018 | 10,000 x 0.06 x (1/12)= | 50 |
WestBestVideo, 8%, 6 months, due Apr. 30, 2018 | 2000 x 0.08 x (1/12)= | 13 |
Wells Fargo, 4.5%, 5 years, due Nov. 20, 2022 | 20,000 x 0.045 x (1/12) = | 75 |
29. Insurance expense for December2017 needs to be recorded using the number of daysin the insurance policy.
