On December 2010 ， the Zhonghua Company took place the following transactions, please make the accounting entries for these transactions(including adjusting entries and closing entries). Dec. 1 Issued capital stock with a total of par value and sold for cash. Dec. 2 Paid cash for six months’ office rent in advance 6000 Dec. 2 Leased a land to B company, and receive three months rent Dec. 3 Purchased for Equipment, paid in cash and signed a promissory note for the balance. The equipment is estimated to be used for four years. The depreciation method is the straight line method. Dec. 5 Purchased a lot of merchandise on account, amount ； Suppose the beginning inventory is 0.

Dec 13 Made sales of merchandise on account for Dec 16 Complete Advertice service for C company and collect Dec 19 Paid cash for accounts payable. Dec 20 Received the sales accounts on Dec 13. Dec 31 Paid employee’s salaries Dec 31 Paid monthly utility bills 3000 Dec 31 Earned interest income 2000, but not received. Dec 31 The ending inventory is Dec 31 The income tax rate is 25%. Dec 31 Suppose the dividends are ， and the company paid the dividends.

Exercise5 Cash Capital Stock

Prepaid Rent 6000 Cash6000

Unearned Rent Income6000

Equipment Cash Notes payable280000

Purchase Accounts Payable Or: Merchandise Inventory Accounts Payable450000

Accounts Receivable Sales580000

Cash20000 Service income20000

Accounts Payable Cash400000

Cash Accounts receivable580000

Salary expense60000 Cash 60000

Utility expense3000 Cash3000

Interest receivable 2000 Interest income2000

Cost of goods sold Purchase Merchandise Inventory Cost of goods sold Or: Cost of goods sold (= ) Merchandise Inventory320000

Depreciation Expense (=480000/4/12) Accumulated Depreciation10000

Other expense1000 Prepaid rent 1000

Unearned Rent Income2000 Rent Income 2000

Sales Interest income 2000 Service income Rent Income 2000 Income Summary604000

Income Summary Cost of goods sold Depreciation expense Salary expense Utility expense 3000 Other expense 1000

Income Summary Retained Earnings210000

Retained earnings Income tax payable52500

Retained earnings50000 Dividends 50000

Cash50000