I need assistance with these journal entries Seq. No. I need assistance with the

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I need assistance with these journal entries

Seq. No.

I need assistance with these journal entries

Seq. No.

Date Transaction Description 1 Nov. 1 Company issues common stock 35,000 shares at $10 per share with par value of $1 per share. 2 Nov. 1 Takes a six-month short-term loan $30,000 from the bank with the interest rate 5%, with the principal and interest paid at maturity 3 Nov. 1 Purchases a property as office space at $115,000 , in which $20,000 is the cost for the land and the remaining is the cost for the building. The estimated useful life of the building is 30 years and the residual value is $5,000 4 Nov. 1 Rents a warehouse and prepays the first month's rent $1,000 and security deposit $2,000 5 Nov. 1 Purchases a delivery truck for $33,000 by cash, with 5 years of estimated useful life and $3,000 residual value. The truck is estimated to be driven for 100,000 miles. 6 Nov. 2 Issues 500 preferred stocks of par value $3 for $15 each; The annual dividend is 5%. 7 Nov. 2 Purchases supplies by cash for $2,000 8 Nov. 2 Invests $10,000 in short-term investment 9 Nov. 2 Pays for the insurance premium $3,000 for six months, starting from the current month 10 Nov. 3 Receives cash advance $5,000 from customer Alpha for an order to be filled later 11 Nov. 3 Purchase 1: 4,000 units @ $50 from supplier A (by cash) 12 Nov. 8 Purchase 2: 1,000 units @ $55 from supplier B (50% paid immediately and the remaining is made on account) 13 Nov. 12 Sells 2,000 units priced @ $75 (sold to customer Alpha, the remaining amount is paid in full by cash immediately) 14 Nov. 15 Purchase 3: 1,600 units @ $60 from supplier A (made on account) 15 Nov. 16 Lends $6,000 to a client by receiving a promissory note issued by the client with interest rate of 6% and maturity of six months. 16 Nov. 20 Sells 2,400 units priced @ $78 (on account) to customer Beta 17 Nov. 22 Sells 1,000 units priced @ 80 (by cash) to customer Gamma 18 Nov. 25 10 units from the sale on Nov. 22 are returned and customer Gamma gets full refund immediately 19 Nov. 29 Repurchases 100 shares at $16 each for the purpose of issuing bonus to employees at the end of the year 20 Nov. 30 Announces cash dividends to common stocks, with $0.10 per share (Ignore the dividends to preferred stocks), to be paid at the beginning of next year 21 Nov. 30 Receives a bill from the bank for the month service charge $100 22 Nov. 30 Selling expense accrued in the month is $2,000 and paid in full 23 Nov. 30 Administrative expense for the month is $1,500 and paid in full 24 Nov. 30 Pays the utility bill for current month by cash $500 25 Nov. 30 Accrue salary expense $8,000 for the month, which will be paid at the beginning of the next month 26 Nov. 30 Pays for the bank service charge by cash 27 Nov. 30 Receives interest in cash from the short-term investment for the month $240 28 Nov. 30 Supplies amount to $800 at the end of the month Additional Information Method to estimate bad debt expense: 3% Net Credit Sale Depreciation method for the property: DDB Depreciation method for the delivery truck: S-L Perpetual inventory with: FIFO The income tax rate is 30%

Explanation / Answer

In the books of ....

Contd:

Adjusting Entries:

Sequence No. Account Titles Debit Credit $ $ 1. Cash 350,000 Common Stock 35,000 Paid-in Capital in Excess of Par : Common Stock 315,000 2. Cash 30,000 Note Payable 30,000 3. Land 20,000 Building 95,000 Cash 115,000 4. Rent Expense 1,000 Security Deposit 2,000 Cash 3,000 5. Delivery Truck 33,000 Cash 33,000 6. Cash 7,500 Preferred Stock 1,500 Paid-in Capital in Excess of Par : Preferred Stock 6,000 7. Supplies 2,000 Cash 2,000 8. Short-term Investment 10,000 Cash 10,000 9. Prepaid Insurance 3,000 Cash 3,000 10. Cash 5,000 Unearned Sales Revenue 5,000 11. Inventory 200,000 Cash 200,000 12. Inventory 55,000 Cash 27,500 Accounts Payable 27,500 13. Cash 145,000 Unearned Revenue 5,000 Sales Revenue 150,000 Cost of Goods Sold 100,000 Inventory 100,000

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