At January 1 (beginning of its fiscal year), Conover, Inc

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At January 1 (beginning of its fiscal year), Conover, Inc., a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share):

 

      Cash$2,070Accounts payable$380Short-term investments 580Unearned revenue 1,490Accounts receivable 3,740Salaries Payable 1,040Supplies 320Short-term note payable 950Prepaid expenses 4,890Common stock ($1 par value) 220Office equipment 1,700Additional paid-in capital 6,730Accumulated depreciation-office equipment* (310)Retained earnings 2,180

*This account has a credit balance representing the portion of the cost of the equipment used in the past.

 

1. Received $9,670 cash for consulting services rendered.
2. Issued 44 additional shares of common stock at a market price of $205 per share.
3. Purchased $810 of office equipment, paying 20 percent in cash and owing the rest on a short-term note.
4. Received $1,060 from clients for consulting services to be performed in the next year.
5. Bought $640 of supplies on account.
6. Incurred and paid $1,970 in utilities for the current year.
7. Consulted for clients in the current year for fees totaling $1,790, due from clients in the next year.
8. Received $3,150 from clients paying on their accounts.
9. Incurred $6,380 in salaries in the current year, paying $5,470 and owing the rest (to be paid next year).
10. Purchased $1,400 in short-term investments and paid $970 for insurance coverage beginning in the next fiscal year.
11. Received $95 in interest revenue earned in the current year on short-term investments.

 

1) Prepare journal entries for each transaction for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands, not in dollars.)

 

2) Enter the following transactions for the current year into the T-accounts, using the letter of each transaction as the reference. (Enter your answer in thousands, not in dollars. Round your final answer to nearest whole dollar)

 

3) 3. Using the data from the T-accounts, amounts for the following at the end of the current year were (Enter your answers in thousands, not in dollars. Round your final answers to nearest whole dollar.)

Revenues Expenses Net incomeAssets Liabilities Stockholder's equity