1) On May 20, Salim Company purchased $15,000 of merchandise from Sun Rise Company, FOB shipping point, terms 1.5/10, n/30. Salim pays the freight costs of $400 on May 11. Returned goods totaling $500 are returned to Sun Rise for credit on May 13 its market value is of $300. On May 19, Salim pays Sun Rise in full, less the purchase discount. Both companies use a perpetual inventory system.

(a) Prepare separate entries for each transaction on the books of Salim Company.

(b) Prepare separate entries for each transaction for Sun Rise Company. The merchandise purchased by Salim on May 10 had cost Sun Rise $5,100.

2) The following information pertains to METU Company.

1. Cash balance per bank, July 31, $7,263.

2. July bank service charge not recorded by the depositor $28.

3. Cash balance per books, July 31, $7,284.

4. Deposits in transit, July 31, $1,300.

5. Bank collected $700 note for METU in July, plus interest $36, less fee $20. The collection has not been recorded by METU, and no interest has been accrued.

6. Outstanding checks, July 31, $591.

(a) Prepare a bank reconciliation at July 31.

(b) Journalize the adjusting entries at July 31 on the books of METU Company.

3)

Microsoft Co., During October the following transactions occurred:

1. Purchased equipment on October 1 for $90,000, paying $30,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $600 per month. Interest is $450 per month.

2. The company performed services for customers totaling $6000. These services have not yet been recorded.

3. Maintenance expenses incurred but not paid prior to October 31 totaled $1000.

4. Purchased a one-year insurance policy on October 1 for $11,000.

5. Purchased $3,000 of supplies. On October 31, determined that $800 of supplies were on hand.

Instructions: Prepare the adjusting entries on October 31.