Need help with Accounting with journalizing, posting, par values


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Need help with Accounting with journalizing, posting, par values etc. please answer all questions in the uploaded file. ACC+101+Extra+Credit+Comprehensive+Problem.pdf Comprehensive Problem Lemar White decided to start The White School of Accounting (also referred to as “the company”) on August 1, 2012. The company will be providing accounting tutoring to community college and university students and will also be selling materials (mainly textbooks) to students to assist with their accounting studies. Mr. White started the company by donating the following to the company in exchange for 11,000 common shares at par value of $6: – Vehicle valued at $25,000 – Office equipment valued at 3,000 – Office furniture valued at $5,000 – Cash of $33,000 The following transactions occurred from August 1, 2012 to December 31, 2012: (1) On August 1, 2012, The White School of Accounting entered into a rental/ lease agreement with Middlesex County College to rent two classrooms and one office, starting on Aug 1. The rent for these will be $2,000 per month. The company paid ALL of the rent in advance for August, September, October, November and December 2012. The payment was made to MCC on August 1, 2012. (2) The White School will require liability insurance. MetLife quoted the company a premium of $6,000 for August 1, 2012 to July 31, 2013 (12 months). The company paid the entire amount in advance on August 1, 2012. The insurance is effective Aug 1. (3) On August 5, 2012 the company purchased supplies in the amount of $326 on credit from The Office Depot. The terms are full payment in 60 days. (4) On August 20, 2012, the company purchased 10 Accounting 1 textbooks (to be resold) from Barnes & Noble for $560, on account. Each book was $56. The terms were net 90 days. (5) On August 25, 2012, The White School of Accounting billed a parent (Mr. Green) $500 for tutoring services already provided to a student during August 2012 in the amount of $500. (6) On September 1, 2012, Mr. Green paid the $500 that was owed to the company, along with a check of $500 for the month of September. September’s tutoring services have not yet been provided to the student. (7) On September 5, 2012, the company purchased 20 Accounting 2 textbooks (for resale) from The Blue Colt Bookstore, on account. The cost of the books was $1,000 ($50 per book). The terms of the purchase are 2/10, net 30. (8) On September 15, 2012, the company sent a check to The Blue Colt Bookstore for the textbook purchase on September 5, 2012, in full settlement/ payment of the amount owed. (9) Also on September 15, 2012, the company sent payment to The Office Depot for the purchase of supplies on August 5, 2012. (10) On September 30, 2012, the company received $30,000 cash for tutoring services performed during September 2012. The company also received $1,500 for 5 Accounting 1 textbooks that were sold to students (cash). (Record services performed and products sold in separate accounts). (11) Also, as of September 30, 2012, the company had provided tutoring services in the amount of $500 for Mr. Green’s daughter. He already paid for these services on September 1. (12) On October 1, 2012 the company obtained its September 2012 bank statement and realized that it has incurred $50 of credit card fees for the credit card machine that it uses to process payments. The company also noticed that it received an EFT (electronic funds transfer) from another parent, Mrs. Florida, for exam review services to be performed for her daughter in January 2013. The amount received was $200. (13) Further, on October 1, 2012, upon obtaining the bank statement for September 2012, the company noticed that the check sent to The Office Depot on September 15, 2012 had been incorrectly deducted (by the bank) from the company’s bank account, as $362. (14) On October 3, 2012, a student (Ms. Rodriguez) purchased 2 Accounting 2 textbooks for $300 each. The purchase was made on account

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