14. The following transactions affecting the Curtis Corporation took place in the year 20xx.
a. On January 1, 20xx, stockholders paid $100,000 to the corporation for 10,000 shares of common stock.
b. The following items were purchased on account:
Merchandise $85,000 Supplies 6,000
c. An amount of $6,500 was paid to the landlord. This included rent of $500 for January of the next year.
d. Sales of $117,000 were made.
Cash Sales $57,000 Sales on Account 60,000
e. Collection of accounts receivable was $47,000.
f. Payment of accounts payable was $82,000.
g. Wages paid during the year were $25,000. Wages payable as of December 31 were $500.
h. Insurance premiums paid during the year were $3,000. Prepaid insurance as of December 31 was $1,800.
i. Supplies used during the period were $4,200.
j. The merchandise inventory as of December 31 was $15,000.
k. Bonds were issued on July 1. The par value of the bonds is $50,000, and this amount was received from the investors. The bonds have a 7 percent rate of interest.
l. Income taxes for the year are $1,837. No income taxes were paid in the current year.
Record the foregoing transactions, including adjusting entries, in T-accounts.