Company Information & Summary of Significant Account Policies Macon Machines Company began operations on November 1,...

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Company Information & Summary of Significant Account Policies Macon Machines Company began operations on November 1, 2024. The main operating goal of the company is to sell high end robots. Customers may pay using cash or if appropriate, credit is extended to customers with terms 3/15, n/30 4 The company uses the perpetual inventory method and a FIFO cost system. The company follows a calendar year, with all 5 adjusting entries made at the end of the accounting period, December 31. The company uses the straight-line depreciation 6 for all depreciable assets. The company has decided to use the Allowance method to account for uncollectible accounts. At 7 the end of the period, based on industry standards, the company belleves 2% of the balance in accounts recievable will be 8 uncollectible. The company purchases robots for resale only as such they carry them as inventory. 6 The company has two employees, one is a sales technician, salary of $8000 per month and the other employee is the office 1 manager with a salary of $8000 per month. Payroll is processed on the last day of the month, and paid on the first day of the 2 following month. This means the November 30 payroll with accrue into Salaries Payable and then be paid on Decemember 1. 3 4 Required: 1) Make sure your student ID is correct, this will change the information. Macon Machines Company engaged in the following transactions for November and December. Record the following transactions on the Daily Transactions tab. Note: Place debits first, credits second but do NOT indent credits. If more than one debit or credit, please list in alphabetical order to receive full credit. Round to the penny unless otherwise noted. 1-Nov The owner invested $610000 into the company in exchange for 5,000 shares of common stock 1-Nov The company purchased a computer system for $60000 and signed a one-year note for the entire balance. The note is due on November 1, 2025 and has an annual rate of interest of 3% 2-Nov Paid for two years rent on the office space, $12200 3-Nov Purchased 10 robots at a total cost of $6000 each for cash, FOB Destination. 4-Nov Purchased $3000 of supplies on account, term n/30. 15-Nov Purchased 12 robots at a total cost of $6600 each on account, terms n/30, FOB Destination. Shipping of $150 was paid to the shipping company by the appropriate party. 17-Nov Paid for the supplies purchased on November 4. 18-Nov Paid for a two-year insurance policy for the store, $6000. The policy was effective beginning December 1, 2024. 20-Nov Sold 15 robots for $9500 each on account, terms 3/15, n/30, the company uses FIFO to find the cost of goods sold. The robots were shipped FOB Shipping Point. Record the sales revenue first. 28-Nov Received payment in full on account from the November 20 sale. 29-Nov Paid for November's utilities bill $6100. Prepared payroll for the month of November, the first payroll for the company. Record the Salares Expense entry first. The tax rates are as 30-Nov follows: Federal Income Tax Rate-15%. NC State Income Tax Rate-10%. FICA Tax Rate-7.65% Unemployment Tax Rate-6% on the first $7000 of each employees eamings per year. 1-Dec Paid the employees the amount due to them from the November 30 payroll, taxes will be paid in January. 1-Dec The company borrowed $65000 from Bank of America by signing a 15-year, 6% note. The note requires annual payments of $6693 beginning December 1, 2025. 1-Dec Purchased a new delivery truck to save customers on shipping. The total cost of the Delivery Truck was $40000 4-Dec Paid the amount due from the November 15 purchase. 5-Dec Declared and paid $2000 in cash dividends to the stockholders of the company. 6-Dec Purchased $3600 of supplies on account, term n/30. 7-Dec Purchased 20 robots at a cost of $7260 each on account, terms n/30, FOB Destination. 15-Dec Sold 22 robots for $10450 each on account, terms 2/10, n/30, FOB Shipping Point, the company uses FIFO to find the cost of goods sold. Record the sales revenue first. 18-Dec Paid for an ad in the local newspaper, $6000 24-Dec Received $83600 payment for 8 robots to be shipped on January 8, 2025 Company Information & Summary of Significant Account Policies Macon Machines Company began operations on November 1, 2024. The main operating goal of the company is to sell high end robots. Customers may pay using cash or if appropriate, credit is extended to customers with terms 3/15, n/30 4 The company uses the perpetual inventory method and a FIFO cost system. The company follows a calendar year, with all 5 adjusting entries made at the end of the accounting period, December 31. The company uses the straight-line depreciation 6 for all depreciable assets. The company has decided to use the Allowance method to account for uncollectible accounts. At 7 the end of the period, based on industry standards, the company belleves 2% of the balance in accounts recievable will be 8 uncollectible. The company purchases robots for resale only as such they carry them as inventory. 6 The company has two employees, one is a sales technician, salary of $8000 per month and the other employee is the office 1 manager with a salary of $8000 per month. Payroll is processed on the last day of the month, and paid on the first day of the 2 following month. This means the November 30 payroll with accrue into Salaries Payable and then be paid on Decemember 1. 3 4 Required: 1) Make sure your student ID is correct, this will change the information. Macon Machines Company engaged in the following transactions for November and December. Record the following transactions on the Daily Transactions tab. Note: Place debits first, credits second but do NOT indent credits. If more than one debit or credit, please list in alphabetical order to receive full credit. Round to the penny unless otherwise noted. 1-Nov The owner invested $610000 into the company in exchange for 5,000 shares of common stock 1-Nov The company purchased a computer system for $60000 and signed a one-year note for the entire balance. The note is due on November 1, 2025 and has an annual rate of interest of 3% 2-Nov Paid for two years rent on the office space, $12200 3-Nov Purchased 10 robots at a total cost of $6000 each for cash, FOB Destination. 4-Nov Purchased $3000 of supplies on account, term n/30. 15-Nov Purchased 12 robots at a total cost of $6600 each on account, terms n/30, FOB Destination. Shipping of $150 was paid to the shipping company by the appropriate party. 17-Nov Paid for the supplies purchased on November 4. 18-Nov Paid for a two-year insurance policy for the store, $6000. The policy was effective beginning December 1, 2024. 20-Nov Sold 15 robots for $9500 each on account, terms 3/15, n/30, the company uses FIFO to find the cost of goods sold. The robots were shipped FOB Shipping Point. Record the sales revenue first. 28-Nov Received payment in full on account from the November 20 sale. 29-Nov Paid for November's utilities bill $6100. Prepared payroll for the month of November, the first payroll for the company. Record the Salares Expense entry first. The tax rates are as 30-Nov follows: Federal Income Tax Rate-15%. NC State Income Tax Rate-10%. FICA Tax Rate-7.65% Unemployment Tax Rate-6% on the first $7000 of each employees eamings per year. 1-Dec Paid the employees the amount due to them from the November 30 payroll, taxes will be paid in January. 1-Dec The company borrowed $65000 from Bank of America by signing a 15-year, 6% note. The note requires annual payments of $6693 beginning December 1, 2025. 1-Dec Purchased a new delivery truck to save customers on shipping. The total cost of the Delivery Truck was $40000 4-Dec Paid the amount due from the November 15 purchase. 5-Dec Declared and paid $2000 in cash dividends to the stockholders of the company. 6-Dec Purchased $3600 of supplies on account, term n/30. 7-Dec Purchased 20 robots at a cost of $7260 each on account, terms n/30, FOB Destination. 15-Dec Sold 22 robots for $10450 each on account, terms 2/10, n/30, FOB Shipping Point, the company uses FIFO to find the cost of goods sold. Record the sales revenue first. 18-Dec Paid for an ad in the local newspaper, $6000 24-Dec Received $83600 payment for 8 robots to be shipped on January 8, 2025