Please create journal entries for the following transactions for Wilson Inc.
l. On January 1, 2012, company sells 500,000 additional shares of stock for cash. The sale price is
$2.00 per share. The par value is $.01 (one cent) per share.
2. On January 1,2012, the company signs a lease and pays one year of rent in advance. One year of rent
is $120,000.
3. On January 2,2012, company buys Office Equipment for $120,000, paying $50,000 in cash and the
balance in a note payable.
4. On January 3, 2012, company bills Brown, Inc. for $30,000 (Canadian dollars) offees (the revenue
account is Consulting Fees Earned). On January 3, 2011, the exchange rate is $1 Canadian dollar
buys $.95 U.S. dollars.
5. On January 31, 2012, company allocates $25,000 of direct labor costs to work in process.
6. On January 31, 2012, company makes the appropriate adjusting journal entry for the rent.
7. On January 3, 2012, Brown, Inc. pays the company $30,000 Canadian dollars which the company
converts to U.S. dollars. The exchange rate is $1 Canadian dollar buys $1 U.S. Dollar.