Problem 2: (20 points) Record the following journal entries for Western Hat Comp

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Problem 2: (20 points) Record the following journal entries for Western Hat Company for the month of May, 2018. The company uses a perpetual inventory method May 1 Received $25,000 from sale of common stock, no par May 5 Purchased inventory on account, $10,500 May 8 Sold inventory on account to customers, $8,300; cost of inventory sold was $4,200. May 11 Sold inventory for cash to customers, $3,100; cost of inventory sold was $1,600 May 20 Borrowed $15,000 from the bank; signed a 12%, 3-year note payable May 21 Purchased equipment on open account, $12,300 May 25 Received payment from customers from the May 8th sale May 30 Paid for inventory purchased on account on May 5th. INSTRUCTIONS: Prepare journal entries for the above transactions. Please prepare your entries in Excel in good form Problem 3: (15 points) Blue Ox Company shows the following account balances for 2018 before closing DR CR 300 Dividends Sales Revenue Cost of Goods Sold Gain on Sale of Land Salaries Expense Utilities Expense Income Tax Expense Retained Earnings (1/1/18 balance) 2,500 1,350 300 400 120 180 3,000 INSTRUCTIONS: Record the closing entries for Blue Ox Company as of December 31, 2018. Prepare your entries in Excel in good form

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Problem 2

Problem 3

Date Particulars Debit Credit May-01 Cash 25000 Common stock 25000 May-05 Inventory 10500 Accounts Payable 10500 May-08 Accounts Receivable 8300 Inventory 4200 Profit on sale 4100 May-11 Cash 3100 Inventory 1600 Profit on sale 1500 May-20 Bank 15000 12%, 3year Note Payable 15000 May-21 Equipment 12300 Acounts Payable 12300 May-25 Cash 8300 Accounts Receivable 8300 May-30 Accounts Payable 10500 Cash 10500

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