Prepare all necessary journal entries in good form (DR and CR, account names and amounts) to account for the events that occurred 2020. Feel free to type out your responses in a word document, or prepare them in an excel file and upload. If no entry is required, please indicate and explain why not. DO NOT prepare any month-end adjusting journal entries in this problem. (Although you are always welcome to use T-accounts, they are not required.)
On January 1, 2020, the books and records of Enterprise, Inc. showed the following balances (normal debits and credits):
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The following events occurred during 2020:
- Paid the 1/1/2020 balance in salaries payable.
- Purchased supplies with $2,000 cash.
- Provided services of $10,000 to customers on account.
- Purchased office equipment for $10,000 with $500 cash and a note payable
for the remaining amount. - Received $4,000 from a customer for services that Enterprise, Inc. agreed to
perform in 2020. - Collected $2,000 cash from customers who had previously purchased on
account. - Paid cash of $2,500 on accounts payable.
- Signed a contract to hire a new controller at an annual salary of $85,000. She
will begin working for Enterprise on 1/1/2021. - Paid current salaries of $12,000.
10.Paid $2,400 for insurance coverage that begins on 1/1/2021.