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5 5 0 1 2 2 3 4 56 7 8 9 20 1 2 2 34 JE # Activity For The Month of January 1 Mason Automotive sells 7,000,000 shares at $5 par for $21 on January 1st, 2024. 2 On January 2nd, Mason Automotive receives $40 Million advance payment from a customer, Highland Inc., to manufacture 500 cars. Mason Automotive buys a patent from Tesla for $20 Million on January 3rd, 2024. The patent has a legal life of 3 20 years and useful life of 25 years. Record the necessary entry as of January 3rd, 2024. Assume the patent was purchased using cash. Mason Automotive purchased $150 Million dollars worth of inventory on January 4th, 2024. $90 Million was paid 4 with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. 5 6 7 Ed Mason, the CEO, hires 4,300 employees, whom will receive a combined salary of $8.2 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 6th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, January 1st, 2024. Mason Automotive purchases fixed assets of $200 Million that will have a useful life of 30 years and a salvage value of $20 million on January 8th, 2024. $60 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. Mason Automotive issues a bond payable on January 11th, 2024 with a face value of $130 Million at 96. The bond will have a useful life of 14 years with an interest payment of 8.25% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 8th, 2024. Note: When considering the amortization of the discount or premium, assume the straight line method is used. Interest will be accrued on a monthly basis. 8 Mason Automotive pre-pays for rent Expense for the next four years of $80 Million on January 1st, 2024. 9 Mason Automotive purchased $10 Million dollars worth of supplies on account on January 13th, 2024. On January 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were FOB Destination. The first part of the delivery was received by Pather Paws on January 27th with a sales value of 10 $150 Million and the inventory cost was $90 Million. The second part of the delivery was received on February 3rd with a sales value of $250 Million and an inventory cost of $175Million. Assume that this sale was made on account. 11 On January 23rd, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $30 per share. 7 569 Month End Adjusting Entries 5 5 0 1 2 2 3 4 56 7 8 9 20 1 2 2 34 JE # Activity For The Month of January 1 Mason Automotive sells 7,000,000 shares at $5 par for $21 on January 1st, 2024. 2 On January 2nd, Mason Automotive receives $40 Million advance payment from a customer, Highland Inc., to manufacture 500 cars. Mason Automotive buys a patent from Tesla for $20 Million on January 3rd, 2024. The patent has a legal life of 3 20 years and useful life of 25 years. Record the necessary entry as of January 3rd, 2024. Assume the patent was purchased using cash. Mason Automotive purchased $150 Million dollars worth of inventory on January 4th, 2024. $90 Million was paid 4 with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. 5 6 7 Ed Mason, the CEO, hires 4,300 employees, whom will receive a combined salary of $8.2 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 6th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, January 1st, 2024. Mason Automotive purchases fixed assets of $200 Million that will have a useful life of 30 years and a salvage value of $20 million on January 8th, 2024. $60 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. Mason Automotive issues a bond payable on January 11th, 2024 with a face value of $130 Million at 96. The bond will have a useful life of 14 years with an interest payment of 8.25% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 8th, 2024. Note: When considering the amortization of the discount or premium, assume the straight line method is used. Interest will be accrued on a monthly basis. 8 Mason Automotive pre-pays for rent Expense for the next four years of $80 Million on January 1st, 2024. 9 Mason Automotive purchased $10 Million dollars worth of supplies on account on January 13th, 2024. On January 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were FOB Destination. The first part of the delivery was received by Pather Paws on January 27th with a sales value of 10 $150 Million and the inventory cost was $90 Million. The second part of the delivery was received on February 3rd with a sales value of $250 Million and an inventory cost of $175Million. Assume that this sale was made on account. 11 On January 23rd, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $30 per share. 7 569 Month End Adjusting Entries