Question

Portfolio Project Option #2 is for accounting students who are intuitive learners by nature. You learn best from abstract materials like theories and concepts, enjoy challenges, and tend to be more innovative. For this assignment, you are required to complete the accounting case for Friday Line in Part 1, Bolton Consulting in Part 2, and Aranas Manufacturing in Part 3. Follow the additional instructions provided below. (The templates can be found in Module 8, and by clicking "Next" at the bottom of this page.) Part 1: Friday Line, a modeling agency, completed the following transactions during the first month of operations: April 1: Stockholders invested $65,000 cash along with equipment valued at $32,000 in the company in exchange for 1,000 shares of stock. April 3: Friday Line paid $9,500 cash to settle accounts payable. April 6: Friday Line completed services for a client and immediately received $2,500 cash. April 9: Friday Line completed a $7,500 project for a client who must pay within 30 days. April 12: Friday Line made credit purchases of $9,200 for office equipment and $4,100 for office supplies. Payment is due within 10 days. April 19: Friday Line paid $3,200 cash for the premium on a 12-month insurance policy. April 21: Friday Line pre-paid $12,000 for 12 months' rent for their office space. April 22: Friday Line received $6,000 cash as a partial payment for the work completed on April 9

Answer 1

Prepare journal entries as follows:

Date	Account Title	Debit	Credit
April
1	Cash	$65,000
	Common stock (1,000 shares × $65)		$65,000
3	Accounts payable	$9,500
	Cash		$9,500
6	Cash	$2,500
	Service revenue		$2,500
9	Accounts receivable	$7,500
	Service revenue		$7,500
12	Office equipment	$9,200
	Office supplies	$4,100
	Accounts payable		$13,300
19	Prepaid Insurance	$3,200
	Cash		$3,200
21	Prepaid rent	$12,000
	Cash		$12,000
22	Cash	$6,000
	Accounts receivable		$6,000
25	Office supplies	$725
	Accounts payable		$725
26	Accounts receivable	$3,125
	Service revenue		$3,125
27	Dividends	$6,500
	Cash		$6,500
30	Utility expense	$525
	Cash		$525