ACC 311 Spring 2020 Cycle Problem Transactions The following transactions took place during the month of December, 2019: Dec. 1 Paid $7,500 to cover rent for December, January, February, and March. Paid an annual premium of $8,400 for business insurance. Received $16,500 from a customer to satisfy a balance from sales in September. Paid $28,500 for display cases and other store fixtures. Borrowed $20,000 from the bank, signing a 3-year, 5.8% promissory note. Purchased $48,000 of merchandise from Gilbert Company with terms 2/10, n/30. Purchased merchandise for $23,000 cash. 10 Returned damaged merchandise to Gilbert Company received credit for $17,000. 10 Investors paid a total of $30,000 to purchase 20,000 shares of the company's $.80 par value common stock. Sold merchandise to RJ. Anderson on account, $28,000 with terms 2/10, net/30. Received and paid telephone bill in the amount of $425 for December service. Completed a $9,700 credit sale to Ben Jackson with terms 1/10, n/30. 13 Paid the balance due to Gilbert Company. 15 16 18 Received $2,000 of merchandise returned by Ben Jackson. Purchased $18,000 of merchandise from Leo Company with terms 1/10, n/30. A company that owed us $1,100 filed bankruptcy. The account was written off. Bought $530 of supplies on account. Sold merchandise on account to Martha Conner for $26,000, terms 2/15, n/30. 19 20 20 Received payment in full from Ben Jackson. 24 Received a $385 bill for electricity used in December 28 Received a check from R.J. Anderson for payment in full. 28 Recorded cash sales for December totaling $39,600. 29 Paid half of the amount owed to Leo Company. 31 Improve It declared and paid a $.16 per share cash dividend. (One simple entry) Improve It, Inc. General Journal Page 1 Dec 2019 Post Ref. Credit prepaih Rent Debit 7500 (bo 100 7500 Improve It, Inc. General Journal Page 2 Dec 2019 Post Ref. Debit Credit Improve It, Inc. General Journal Dec 2019 Post Ref. Page 3 Credit Debit