1. During December, Ahmed Rashidi company completed the following summary transactions Date Transaction December Ahmed Rashidi invested $1,000,000 cash, $300,000 equipment on which there was notes payable of $50,000, and also contributed supplies in the amount of $6,000 Purchased merchandise on account from Kwanza, $200,000, term 2/10, 1/30, FOB Shipping point. Ahmed Rashidi company paid the transportation charge of $3,000 Sold goods on account to Mr. Never Pay, $20,000. The cost of the goods was $3,000 Established Petty Cash Fund of $500. Paid 36-month insurance starting from December 1, $3,600. Purchased Furniture and Fixtures for $200,000 cash. Returned $20,000 of the merchandise purchased from Kwanza. Paid the amount due to Kwanza. Sold merchandise to Eric Robinson for $120,000 (cost is $20,000), term 3/15, n/30. Eric Robinson returned $30,000 goods because of defectiveness; the cost of the goods returned was $5,000. Received a 120-day 10% note from Eric Robinson for the outstanding balance due from him. Purchased merchandise from Demetrius El for $90,000, term 2/10; n/30, FOB destination. Demetrius El paid the shipping charge of $2,000. Paid the amount due to Demetrius El. Discounted the note received from Eric Robinson at 9%. Received 58.000 from ABC for service to be performed. Part of the services owed to ABC was performed in the amount of $2,000. Accrued service revenue of $120,000 Acored Salaries of $12,000 to be paid to employees. One-month insurance expired and needs to be adjusted Replenish the petty cash fund. The following information was available to perform replenishment of the petty cash fund: Receipts for the following expenses were found In the box: Travel expense 150, Beverage expense $50; Postage and Delivery 570 Telephone expense $30, and Utilities Expense $80. In addition to the receipts found the box, there were coins and currencies that were unspent in the amount of $130 Increase the petty cash fund to $800. Make adjustment for one-month depreciation of equipment that was contributed to the company. The life of the equipment was 10 years, and it has a salvage value of $50,000. The company uses straight line method of depreciation, Make Adjustment for one-month depreciation of Furniture and Fixtures that were acquired on December 1. The furniture and fixtures had a residual value of $20,000 and a useful life of 10 years. The company uses double declining balance method for determining depreciation expense for Furniture and Fixtures. The company traded in the furniture and fixtures for different furniture and fixtures that had a fair market value of $210,000. The fair market value of the old furniture and fixtures was $195,000. The transaction does not have economic (commercial) substance. Make provision for bad debts at one percent of gross sales to-date. Wrote off the balance in Mr. Never Pay's account. Mr. Never Pay learned that his account has been written off and he decided to pay $6,000 of the amount written off. Pald salaries $20,000 the December transactions using a perpetual inventory system. Record all your purchases and sales "gross". December transactions into the general ledger using a "T" shape account form. re n ce on the basis of all the balances in your general ledger. are an income statement. gea Retained Earnings Statement Para Balance Sheet