A - V Journal Entries

Prepare the necessary general journal entries for the month of October for Rolen Company for each situation given below. Rolen uses a perpetual inventory system.

Oct. 5 Paid cash of $12,000 for operating expenses that were incurred and properly recorded in the previous period.

Oct. 8 Purchased merchandise for $25,000 on account.

Oct. 10 Paid freight bill of $470 for merchandise purchased on October 8.

Oct. 12 Borrowed $10,000 from Admire Bank signing an 8%, 3-month note.

Oct. 22 Purchased a 2-year insurance policy for $2,400 cash.