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Annie Meyer borrowed $75,000 from a local organization that finances the start-up of small businesses. Meyer signed a long-term Note Payable with an 8% annual
- Annie Meyer borrowed $75,000 from a local organization that finances the start-up of small businesses. Meyer signed a long-term Note Payable with an 8% annual interest rate due in 5 years, and Meyer deposited this money in the company checking account. Meyer Company is required to repay the note and interest upon maturity.
- Meyer paid rent for November, December, and January on her small office. The rent for all three months was $3,000 ($1,000 each month).
- Meyer paid insurance for November and December of $400 ($200 each month).
- Meyer purchased a van for deliveries. The cost of the van was $30,000, its useful life is 5 years, and it will have a salvage value of $1,500 at the end of the 5 years.
- Meyer purchased a computer for $1,200 (5-year useful life, no salvage value) and office furniture for $2,000 (5-year useful life, $400 salvage value).
- Meyer purchased the following inventory from Cards Etc. on credit terms 2/10, n/30:
Inventory Item Cost per item Quantity Purchased
Thank You $0.30 5000
Birthday $0.80 3000
- Sold inventory on account to Tidbits:
Inventory Item Sales Price per item Quantity Sold
Thank You $3.00 2000
Birthday $3.50 500
- Received from Tidbits a merchandise return for 30 of the Thank You cards.
- Sold inventory on account to a novelty shop that just opened called Thingsville:
Inventory Item Sales Price per item Quantity Sold
Thank You $3.00 400
Birthday $3.50 400
- Purchased inventory on credit terms of 2/10, n/30 from Greetings!:
Inventory Item Cost per item Quantity Purchased
Thank You $0.40 2000
- Sold inventory for cash to a local company:
Inventory Item Sales Price per item Quantity Sold
Thank You $3.00 3000
- Purchased supplies for cash of $100.
- Paid utilities of $350.
- Prepare month-end adjusting entries for rent, insurance, interest expense, and depreciation for the month of November. Also, $30 worth of supplies was on hand at the end of the month.
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