Larry Matt, Inc. completed these transactions during December of the current year: Dec. 12348101418273030 Began a financial services practice by investing $15,000 cash and office equipment having a $5,000 value. Purchased $1,200 of office equipment on credit. Purchased $300 of office supplies on credit. Completed work for a client and immediately received a payment of $900 cash. Completed work for Precept Paper Co. on credit, $1,700. Paid for the supplies purchased on credit on December 3. Paid for the annual $960 premium on an insurance policy. Received payment in full from Precept Paper Co. for the work completed on December 8. The company paid $650 cash in dividends to the owner. (sole shareholder) Paid $175 cash for the December utility bills. Received $2,000 from a client for financial services to be rendered next year. Prepare general journal entries to record these transactions.
Definitions:
Quarterly Compounded
A method where interest is calculated and added to the principal balance four times a year.
Nominal Interest Rate
The rate of interest before adjustment for inflation, representing the face value of borrowing or lending.
Interest Rate
An interest rate is the percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.
Strip Bond
A debt security that is derived from the coupon and principal payments of a bond, which are separated ("stripped") and sold as individual zero-coupon bonds.