1-Jan Crazy's sold 100% of its common stock for $200K cash. Par value of stock was 80.00/share and a thousand shares were sold
1-Jan Crazy borrowed $50K cash by issuing a 3-year note with a stated interest rate of 8% per year. To be compounded semi-annually. The interest is due on January 1 of each year; and the principal will be paid on the maturity date
1-Mar Started up a second line of consulting services. Sold services for a $100K in cash; and paid related misc. expenses of $70K - all related to second line of business. All other transactions related to first consulting operations, unless noted.
Purchased $10K of an investment in another company's stock. Not sure if it will be sold, traded, or held to maturity
1-Dec Found a buyer for second line of consulting services. Sold the entire business for equipment worth 60K; which resulted in a gain of $60K
Hired an employee in mid-December. Salaries are to be paid on 1/3. The amount unpaid at year-end is $15.4K.
The amount that will be paid on 1/3 is $19.8K. Ignore payroll taxes (FICA, state and federal withholdings.)
31-Dec Determined that there is still about $5K to do for client X. Determined that we sold inventory at $40K (cost). (Credit inventory $40K and debit cost of goods sold $40K)
31-Dec Determined that the stock purchased on 10/1 was now only worth $8K. However, the stock was not sold.
31-Dec We declared and paid a dividend of 10K to our investor/owner
Tax Rate is 30% (none of the tax is paid, but it is accrued as a liability. Include tax in the journal entries)© BrainMass Inc. brainmass.com June 20, 2018, 4:43 pm ad1c9bdddf
The journal entries are in excel. Click in cells to see computations. The most complicated entry is for the gain on sale and operating income from the discontinued operation.