l. On January 1 2012 company sells 500000 additional shares of stock for cash. The sale price is
$2.00 per share. The par value is $.01 (one cent) per share.
2. On January 12012 the company signs a lease and pays one year of rent in advance. One year of rent
3. On January 22012 company buys Office Equipment for $120000 paying $50000 in cash and the
balance in a note payable.
4. On January 3 2012 company bills Brown Inc. for $30000 (Canadian dollars) offees (the revenue
account is Consulting Fees Earned). On January 3 2011 the exchange rate is $1 Canadian dollar
buys $.95 U.S. dollars.
5. On January 31 2012 company allocates $25000 of direct labor costs to work in process.
6. On January 31 2012 company makes the appropriate adjusting journal entry for the rent.
7. On January 3 2012 Brown Inc. pays the company $30000 Canadian dollars which the company
converts to U.S. dollars. The exchange rate is $1 Canadian dollar buys $1 U.S. Dollar.