Comet sold $540,000 of goods for $440,000 cash and $100,000 accounts receivable. Cost of goods sold was $210,000.

Account	DR	CR

Comet incurred administrative expenses of $100,000 and paid for these with cash. They also incurred wages expense of $80,000 to which they paid $76,000 in cash and will pay $4,000 in January of next year.

Account	DR	CR

Comet purchased a $100,000 building. They financed $80,000 with a long-term loan and issued $20,000 in common stock.

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Depreciation Expense for the year is $40,000.

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Comet estimates 1% of sales ($540,000) will be uncollectible.

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Comet purchased $220,000 of inventory during the year. $200,000 Cash and $20,000 A/P

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Comet received $3,000 Cash for products to be delivered next year.

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Comet accrued interest on the $80,000 note payable from the earlier transaction. The interest rate is 9% and 5 months of time has passed since issuing the note.

Account	DR	CR

Comet has a one-year warranty on its products. Comet estimates that 2% of sales ($540,000) would be returned for warranty repairs.

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Comet issued 10,000 shares of $1 par value common stock for $8 per share.

Account	DR	CR

Comet reacquired 500 shares of common stock at $6 per share.

Account	DR	CR