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 6000Dec. 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.

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 60000Dec 31 Paid monthly utility bills 3000Dec 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.

Exercise5

Cash 1000000 Capital Stock 1000000

Prepaid Rent 6000Cash 6000

Cash 6000Unearned Rent Income 6000

Equipment 480000 Cash 200000 Notes payable 280000

Purchase 450000Accounts Payable 450000

Or:Merchandise Inventory 450000

Accounts Payable 450000

Accounts Receivable 580000Sales580000

Cash 20000Service income 20000

Accounts Payable 400000 Cash 400000

Cash 580000Accounts receivable580000

Salary expense 60000Cash 60000

Utility expense 3000 Cash 3000

Interest receivable 2000 Interest income 2000

Cost of goods sold 450000Purchase 450000

Merchandise Inventory 130000Cost of goods sold 130000

Or:Cost of goods sold 320000(=0+450000-130000)

Merchandise Inventory 320000

Depreciation Expense 10000(=480000/4/12)

Accumulated Depreciation 10000

Other expense 1000 Prepaid rent 1000

Unearned Rent Income 2000Rent Income 2000

Sales 580000Interest income 2000Service income 20000Rent Income 2000

Income Summary 604000

Income Summary 394000Cost of goods sold 320000Depreciation expense 10000

Salary expense 60000Utility expense 3000Other expense 1000

Income Summary 210000Retained Earnings 210000

Retained earnings 52500Income tax payable 52500

Retained earnings 50000Dividends 50000

Dividends 50000 Cash 50000