Jackson Enterprises Is a New Company Organized as a Sole

question 149

Essay

Jackson Enterprises is a new company organized as a sole proprietorship.The following transactions occurred during the first month of business.
a)Received $15,000 cash from the owner,Marjorie Johnson,in exchange for capital.
b)Paid the first month's rent with $800 cash.
c)Purchased equipment by paying $4,000 cash and executing a note payable for $4,000.
d)Purchased office supplies for $200 cash.The supplies remain at the end of the month.
e)Billed clients for a total of $7,000 for design services rendered.
f)Received $1,000 cash from clients for services rendered above.
Required:
1.Prepare journal entries and post the journal entries to T-accounts.
2.Prepare a trial balance at the end of the first month using the above transactions.

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Definitions:

First-To-Invent Rule

A patent law principle stating that the right to a patent for an invention goes to the first person to invent it, not necessarily the first to file a patent application.

Copyright

A form of intellectual property protection granted by law to the creators of original works of authorship, including literary, dramatic, musical, and certain other intellectual works.

Life of the Creator

A legal term often associated with copyright laws, referring to the duration in which copyright protection lasts based on the creator's lifetime plus a number of years posthumously.

First-to-File Policy

A legal principle where the first party to file a patent application for an invention is granted the patent, regardless of who was the first to invent.