Question

1/1 An Investor acquired 100% of Crazy’s stock with an investment of 5400.000 cash. Par value of stock was 100.00/share and a thousand shares were sold
1/1 Crazy borrowed $250,000 cash by issuing a 3-year note with a stated interest rate of 10% per year. To be compounded annually. The interest xviii be paid on January 1 of each year (starting next year); and the principal will be paid on maturity
1/2 Prepaid a year’s rent for $24,000 (cash) for the current year. The first month’s rent was due 1/1 for January
1/15 Purchased with cash - office equipment for $36,000 and supplies for $18,000
2/7 Received $250,000 cash for consulting, services to be performed in the future for client “X”
3/1 Started up a second line of consulting services. During the year thic nperntinnc will be discontinued. Sold consulting services valued at $200,000 for the year. We incurred misc. expenses of $50,000. This summarizes all revenues and expenses for this business. There are no other transactions for this business.
7/1 Prepaid $24,000 cash for a 12-month insurance policy (starting on 7/1)
9/12 Purchased 55,000 more of supplies on credit
9/16 Provided consulting services of $80,000 on aedit to client “Y”.
10/1 Purchased $10,000 (with cash) of an investment in another company’s (Pear Inc.) stock. Not considered by our management as a trading stock. Issued 200 additional shares of our common stock for $100,000 cash
10/20 Collected $5,000 from client “Y”. Sold $50,000 of future services — receiving a cash deposit) to Client “ZA”.
90% of the services are performed by year-end.
12/1 Decided to sell second line of consulting business. Found a buyer for second line of consulting services. Sold the business in exchange for $40,000 worth of equipment; which resulted in a gain of $40,000.
12/15 Paid down the payable (supplies) with a $1,000 cash payment. Received $10,000 cash from Client “ZA”
12/31 Counted supplies and determined that $5,000 of supplies were still on hand
12/31 Salaries paid throughout the year: $50,000. Current salaries to be paid on 1/3. The total amount unpaid at
21/31 is $5,000.
12/31 Determined appropriate total depreciation is $10,000
12/31 Determined that there is still about $10,000 to do for client X
12/31 Determined that the stock purchased on 10/1 was now only worth $8,000. However, the stock was not sold.
12/31 We declared and paid a dividend of $10,000
12/31 Determined we paid and incurred $5,000 in restructuring expenses related to discontinued operations
12/31 We received cash of $1,000 in dividends from Pear Inc.
Tax Rate is 30% (none of the tax is paid, but it is accrued as a liability)
1. Prepare a Balance Sheet in good form for 12/31/2015. Prepare closing entries

Answer 1