Event 1: Collins Consultants was established on January 1, 2005, when it acquired $15,000 cash from Collins.

1
Event 1 Collins Consultants was established on
January 1, 2005, when it acquired 15,000 cash
from Collins.
2
Event 2 On February 1, Collins Consultants
issued a 12, 10,000 note payable to the
National Bank to borrow cash.
3
Event 3 On February 17, Collins Consultants
purchased 850 of office supplies on account from
Morris Supply Company.
4
Event 4 On February 28, Collins Consultants
signed a contract to evaluate the internal
control system used by Kendall Food Stores.
Kendall paid Collins 5,000 in advance for these
future services.
5
Event 5 On March 1, Collins Consultants
received 18,000 from signing a contract to
provide professional advice to Harwood
Corporation over a one-year period.
6
Event 6 On April 10, Collins Consultants
provided 2,000 of services to Rex Company on
account.
7
Event 7 On April 29, Collins Consultants
performed services and received 8,400 cash.
8
Event 8 On May 1, Collins Consultants loaned
Reston Company 6,000. Reston issued a 9 note
to Collins.
9
Event 9 On June 30, Collins purchased office
equipment for 42,000 cash.
10
Event 10 On July 31, Collins paid 3,600 cash
in advance for a one year lease to rent office
space for a one-year period beginning August 1.
11
Event 11 On August 8, Collins Consultants
collected 1,200 from Rex Company as partial
payment of the accounts receivable (see Event 6).
12
Event 12 On September 4, Collins Consultants
paid employees who worked for the company 2,400
in salaries.
13
Event 13 On September 20, Collins Consultants
paid a 1,500 cash dividend to its owner.
14
Event 14 On October 10, Collins Consultants
paid Morris Supply Company the 850 owed from
purchasing office supplies on account (see Event
3).
15
Event 15 On November 15, Collins completed its
consulting evaluation of the internal control
system used by Kendall Food Stores (see Event 4).
16
Event 16 On December 18, Collins Consultants
received a 900 bill from Creative Ads for
advertisements which had appeared in regional
magazines. Collins plans to pay the bill later.
17
Adjustment 1 Collins Consultants recognized
accrued interest on the 6,000 note receivable
from Reston (see Event 8).
18
Adjustment 2 Collins Consultants recognized
accrued interest expense on the 10,000 note
payable it issued to National Bank (see Event 2).
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Adjustment 3 Collins Consultants recognized
800 of accrued but unpaid salaries.
20
Adjustment 4 Collins Consultants recognized
4,000 of depreciation on the office equipment it
had purchased on June 30 (see Event 9).
21
Adjustment 5 Collins Consultants recognized
rent expense for the portion of prepaid rent used
up since entering the lease agreement on July 31
(see Event 10).
22
Adjustment 6 A physical count at the end of the
year indicates that 125 worth of the supplies
purchased on February 17 are still on hand (see
Event 3).
23
Adjustment 7 Collins Consultants adjusted its
accounting records to reflect revenue earned to
date on the contract to provide services to
Harwood Corporation for a one-year period
beginning March 1 (see Event 5).
24
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