Jan. 1 Investors provided $2,500,000 of cash in exchange for stock of Fernandez Corporation. Jan. 1 Purchased combines (equipment) and trucks in exchange for $1,000,000 cash and a $3,000,000 note payable. Feb. 7 Purchased $40,000 of supplies on account that will be needed during the upcoming harvest. Mar. 3 Paid wages of $65,400. Apr. 1 Billed customers for services in the amount of $230,000. Apr. 11 Paid $30,000 toward the purchase of February 7. May 1 Purchased a $24,000 insurance policy. This transaction was recorded as prepaid insurance. June 6 Collected $210,000 on accounts receivable. June 9 Paid wages of $130,600. June 15 Paid $30,200 for fuel costs. June 20 Paid $12,500 for lodging costs incurred by crew. June 30 Paid $120,000 of interest and $80,000 to reduce the balance of the note payable. Aug. 1 Billed customers for services provided in the amount of $812,000. Sept. 3 Collected $715,000 on accounts receivable. Sept. 16 Purchased $25,000 of supplies on account. Sept. 25 Paid $61,200 for fuel costs.
Oct. 20 Paid $8,100 for lodging costs incurred by crew. Nov. 3 Paid wages of $125,900. Dec. 15 Collected $100,000 as deposits from customers who contracted for 2012 harvesting services. Dec. 31 Declared and paid a $25,000 dividend to shareholders. Fernandez Corporation Jan 1. Cash 2,500,000 Capital Stock 2,500,000 Jan 1. Equipment 4,000,000 Notes Payable 3,000,000 Cash 1,000,000 Feb 7. Supplies 40,000 Accounts Payable 40,000 Mar 3. Wage Expense 65,400 Cash 65,400 Apr 1. Accounts Receivable 230,000 Revenue 230,000 Apr 11. Accounts Payable 30,000
Supplies Expense 30,000 May 1. Prepaid Insurance 24,000 Cash 24,000 Jun 6. Cash 210,000 Accounts Receivable 210,000 Jun 9. Wage Expense 130,600 Cash 130,600 Jun 15. Fuel Expense 32,000 Cash 32,000 Jun 20. Lodging Expense 12,500 Cash 12,500 Jun 30. Interest Payable 120,000 Cash 120,000 Jun 30. Notes Payable 80,000 Cash 80,000 Aug 1. Accounts Receivable 812,000 Revenue 812,000 Sep 3. Cash 715,000 Unearned Revenue…