Question

1. Listed below are the transactions that occurred in September2006.

9/1 The company issued 500 shares of capital stock at $10 pershare.

9/2 Jackson Corporation borrowed $10,000 from the bank signing a3-month note at 12% annual interest.

9/3 $3,000 supplies were purchased on account.

9/4 Office furniture was purchased for $6,000 cash. Thefurniture is expected to have a ten-year life, with no residualvalue.

9/15 Wages for the first half of September were paid,$2,000.

9/17 The company billed customers $1,500 for servicesperformed.

9/20 $3,000 was received for services to be provided inSeptember and October.

9/23 $5,000 cash was received for services performed inSeptember.

9/27 The company collected $1,000 on account.

9/30 Declared and paid dividends, $1,000.

Additional information available at the end of SEptemberincludes:

k. $2,000 of supplies remains on hand.

l. Fees earned but not yet billed total $3,000.

m. By the end of September, the company had performed one-thirdof the services related to the 9/20 transaction.

n. At the end of September, employees were owed $2,000.

o. Hint: There are two more adjusting entries required ( 9/2 and9/4)

8. Prepare closing entries for Jackson Corp. Post the closingentries to the ledger accounts.