Brant on Banking began operations on January 1 2015

Brant #2984
Brant on Banking began operations on January 1, 2015. Brant on had the following transactions
in its first year of business:• January 4: Owners invested $ 400,000 (the par value of the stock)
in exchange for 40,000 shares of common stock. • January 31: Brant on purchased an office
building for $ 320,000 and paid for the purchase with a note payable. Interest in the amount of $
16,000 will be due annually on January 31 of each year, beginning in 2016. • February 1: Brant
on rented out a portion of its office building to another company. The renter signed a rental
lease for the period of February 1, 2015 to January 31, 2016, and paid the annual rent amount
of $ 60,000 upfront in cash. • March 1: Brant on paid $ 12,000 cash for administrative
expenses. • March 28: Brant on purchased supplies in the amount of $ 42,000 on account with
the supplier. • April 8: Brant on purchased a one- year insurance policy that runs from May 1,
2015 to April 30, 2016, in the amount of $ 62,000 and paid in full for the policy in cash. • May 1:
Brant on recorded sales revenue in the amount of $ 240,000 that was received in cash from
customers. • July 6: Brant on paid employees $ 34,000 in wages in cash. • September 30:
Brant on recorded $ 320,000 in sales revenue. Of this amount, $ 200,000 was paid in cash and
the remainder was on account.• October 31: Brant on received a cash payment from a
customer in the amount of $ 40,000 to be applied to its account balance related to the
September 30 purchase. • November 15: Brant on purchased supplies in the amount of $
26,000 on account with the vendor. • December 1: Brant on recorded sales revenue in the
amount of $ 222,000, all on credit. • December 22: Brant on received a legal bill for $ 14,000,
which it will pay when due in February 2016. Note: Brant on records straight- line depreciation
on buildings, using a 32 year life and a salvage value of zero. At year- end, wages for 2015 in
the amount of $ 86,000 are due to employees and will be paid in January 2016. Supplies in the
amount of $ 6,000 remain on hand on December 31. Required a. Prepare the journal entries for
the transactions.b. Show the accounting equation effect of each of these transactions. c.
Prepare any necessary year- end adjusting journal entries for these transactions. d. Show the
accounting equation effect of each of the adjusting journal entries.View Solution:
Brant on Banking began operations on January 1 2015 Brant

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