Acme, Inc. - Normal journal entries for the month of December, 2018: Dec 1 Issued 65,000 shares of common stock for $14 per share.

Dec 1 Paid December rent of $7,500.

Dec 1 Issued $200,000 bonds at face with an interest rate of 10% due in 5 years.

Dec 3 Purchased $350,000 of inventory terms 1/10, net 30.

Dec 5 Sold land at cost for cash, $20,000

Dec 8 Sold equipment with original cost of $60,000 and accumulated depreciation of $35,000 for $18,000 cash.

Dec 9 Purchased equipment for $50,000 cash.

Dec 10 Sold inventory on account for $340,000 with a cost of $160,000, terms 2/15, net 30.

Dec 11 Paid for merchandise inventory that was purchased on December 3rd.

Dec 15 Paid utilities, $1,700.

Dec 18 Wrote off uncollectible accounts, $18,000.

Dec 19 Received payment in full for sale on December 10th.

Dec 31 Declared and paid cash dividend of $0.40 per share.

Dec 31 Paid wages and salaries of $9,200.

B. Part One, continued:Adjusting Journal Entries

Record the AJE's in worksheet #3 and then to worksheet #1 and total, as you did in Part A above.

1. Accrue interest on bonds issued on December 1st.

2. Depreciation expense for the month is $1,120 for for the building and $605 for equipment.

3. Accrue sales of $42,000 with a cost of goods sold of $19,000.

4. Prepaid insurance of $483 expired in December.

5. Unearned revenue of $7,500 with a cost of $3,200 was earned during December.

6. Record patent amortization in the amount of: $1,200.

7. Allowance for bad debt account should equal 3% of the accounts receivable balance rounded to the nearest dollar.

C. Part One, continued:Closing Journal Entries Record appropriate closing entries in worksheet #4 and then in worksheet #1 and total as before.