Question

NUMBERS: Service Revenue Per Hour:$96.75 Sales Revenue Per Hour: $62.25 Purchase Price Per Unit: $30.00 Part 1- Create a hypothetical service/merchandising company. You will indude the following on the first page of the project (see template). Note that you will come up with your own name, service provided and product to be sold, but you will be assigned prices Corporate name of your choice Service provided and service price (find your assigned cost in Blackboard Groups) Product sold, sales price, and cost of product (find price and cost in Blackboard Groups) Brief Description of Mission Statement and Corporation's Operations . " . Part 2-General Journal (LO3-2)-Post the following journal entries to the general journal. Trans. Date Description 1 May 1 Sell 50,000 shares of common stock for $50,000 to obtain the funds necessary to start your business. [ 2 May1 Borrow $20,000 from the local bank and sign a note promising to repay the full amount of the debt in 5 years 3 May1 Issue 1,500 shares of $2 par value preferred stock at $30/share. 4 May1 Purchase equipment necessary for business operations for $15,000. 5 May 1 Pay one year of rent in advance, $12,000 ($1,000 per month.) 6 May 3 Purchase supplies on account, $800. 7 May 3 Purchase 200 units of inventory with cash. 8 May 6 Provide 40 hours of services to customers for cash (calculate using your hourly service rate]. 9 May 10 Sell 100 units of inventory on account. (Perpetual method 2 entries) 10 May 12 of 2/10, n/30. 11 May 15 Purchase an additional 300 units of inventory on account. 12 May 20 The customer who purchased product on May 12th pays the amount due (within discount period). 13 future. 14 May 31 Sell 200 units of inventory to a customer who signs a 6-month promissory note at 10% interest for the balance due. 15 May 31 16 May 31 Sell 50 units of inventory to a customer on account with a sales discount May 23 Receive cash in advance for 20 hours of services to be completed in the Pay employee salaries, S1,000 Pay cash dividends to shareholders, $600. Brief Description of Mission Statement and Corporation's Operations Part 2 - General journal (L03-2)- Post the following journal entries to the general journal.

Answer 1