1. 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 1000000 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 6000. Dec. 3 Purchased 480000 for Equipment, paid 200000 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 450000 ； Suppose the beginning inventory is 0.

2. Dec 13 Made sales of merchandise on account for 580000 Dec 16 Complete Advertice service for C company and collect 20000. Dec 19 Paid cash 400000 for accounts payable. Dec 20 Received the sales accounts on Dec 13. Dec 31 Paid employee’s salaries 60000 Dec 31 Paid monthly utility bills 3000 Dec 31 Earned interest income 2000, but not received. Dec 31 The ending inventory is 130000. Dec 31 The income tax rate is 25%. Dec 31 Suppose the dividends are 50000 ， and the company paid the dividends.

3. Exercise5 Cash1000000 Capital Stock1000000

4. Prepaid Rent 6000 Cash6000

5. Unearned Rent Income6000

6. Equipment480000 Cash200000 Notes payable280000

7. Purchase450000 Accounts Payable450000 Or: Merchandise Inventory450000 Accounts Payable450000

8. Accounts Receivable580000 Sales580000

9. Cash20000 Service income20000

10. Accounts Payable400000 Cash400000

11. Cash580000 Accounts receivable580000

12. Salary expense60000 Cash 60000

13. Utility expense3000 Cash3000

14. Interest receivable 2000 Interest income2000

15. Cost of goods sold450000 Purchase450000 Merchandise Inventory130000 Cost of goods sold130000 Or: Cost of goods sold 320000 (=0+450000-130000) Merchandise Inventory320000

16. Depreciation Expense 10000 (=480000/4/12) Accumulated Depreciation10000

17. Other expense1000 Prepaid rent 1000

18. Unearned Rent Income2000 Rent Income 2000

19. Sales580000 Interest income 2000 Service income 20000 Rent Income 2000 Income Summary604000

20. Income Summary394000 Cost of goods sold320000 Depreciation expense 10000 Salary expense 60000 Utility expense 3000 Other expense 1000

21. Income Summary210000 Retained Earnings210000

22. Retained earnings 52500 Income tax payable52500

23. Retained earnings50000 Dividends 50000

24. Cash50000