Accrual based accounting
Current date: Jan 1 2012
Annual report ending December 31,2011
a.borrowed $12,000 in cash on a 5 year, 10 percent notes payable, dated March 1, 2012
c. Earned $208,000 in revenues for 2012, including $52,000 on credit and the rest in cash.
d. Sold 4,000 additional shares of capital stock for cash at $1 market value per share on Jan 1, 2012
e.incurred $111,000 in remaining expense for 2012 including $20,000 on credit and the rest paid in cash.
i. Purchased supplies on account for future use, $23,000.
j. Signed a three year $33,000 service contract to start february 1, 2013.
k. Declared and paid cash dividend, $22,000.
MY UNSURE ANSWERS
a. Dr cash $12,000
Dr interest expense $1200
Cr longterm not payable $12,000
Cr interest payable $1200
c. Dr cash $156,000
Dr account receivable $52,000
Cr service revenue $208,000
d. Dr cash $4000
Cr contributed capital $4000
e. Cr account payable $111,000
Dr remaining expense $111,000
i. Dr supplies $23,000
Cr account payable $23,000
j. No transaction
k. Cr cash $22,000
Dr retained earnings $22,000
I have been working on this very hard but now that i attempted to do the income statement, my net income did not meet the checkpoint my teacher gave us. Please help.