Please read the attachments. One is an example, and one for assignment.
Just do the quiz3.
Worksheet for second class
1) September 1
Stockholders purchased 1,000,000 shares of ABC Corporation, a provider of educational programs for the financial services industry. Par Value is $0.10 per share, and the total amount received is $500,000.
2) September 1
Office furniture is purchased for $20,000, which includes sales tax and a delivery charge. ABC pays $4,000 down and finances $16,000, signing a note for 6%. Only interest will be due quarterly for three years, and the principal will be paid in full three years from today. The first interest payment is due 3 months from today. The furniture has a salvage value of 0, and will be depreciated over 7 years using the straight-line method. (Assume the IRS mandate of half –year convention).
3) September 1
Signed a one-year lease for office space in the amount of $36,000. Paid one year in advance by check.
4) September 1
Purchased a one-year liability insurance policy. Paid entire amount of $3,000 in advance by check.
5) September 1
Purchased computer and visual aid presentation equipment for the classroom. The equipment has an expected useful life of 5 years with no salvage value. The straight-line method of depreciation will be used. The cost of the equipment was $25,000, and the company used the corporate credit card to pay for the equipment.
6) September 3
Purchased $1,200 of office supplies on credit.
7) September 7
For a course that is scheduled to start late next month, collected $31,000 of revenue. ABC reserves the right to cancel the course at anytime prior to the start date due to insufficient enrollment.
8) September 13-14
Held a two-day seminar to prepare candidates for the series 7 exam. Realized $26,000 in total revenue, made up of $25,500 in cash collections and invoiced one candidate for $500.
9) September 24
Received credit card bill. In addition to computer visual aid equipment for $25,000, there was an item on the credit card for a business lunch in the amount of $70.. The total credit card bill was for $25,070.
10) September 26
Paid $500 of the $1,200 owed to vendor of office supplies purchased September 3.
11) Paid $18,000 of salaries to employees for the month of September.
12) Received and paid an electric bill for $125.
13) Received and paid a phone bill of $220.
14) Paid dividend to shareholders of $1,000.
15) Paid credit card bill of $25,070.
16) Recorded rent expense for the month of September.
17) Recorded insurance expense for the month of September.