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Create a general ledger from these entries Purchased $400,000 worth of inventory on account. Freght in was an additional 1% of 14 cost Contracted to
Create a general ledger from these entries
Purchased $400,000 worth of inventory on account. Freght in was an additional 1% of 14 cost Contracted to provide client services for $2,000 per month beginning March 1st(Client 15 will pay in cash when due) 16 Sold inventory that cost $5,000 for $11,000 on terms 2/10 net 30 17 Customer pays for inventory 5 days later 18 Paid $8,000 for social media advertising 19 Purchased inventory on account to bring account Inventory account balance to $500K On April 1, Acquired Land, Building, & Equpment in lump sum purchase for $2M. Market 20 value for each was $500K for land, $500K for Equipment, $1.5M for Building. (Mortgage) *Building has a residual value that is 10%of cost and 40 years useful life *Equipment has no residual value and 8 years of useful life Cash Accounts Receivable Ofofice Supplies Prepaid Rent Prepaid Insurance Inventory Land Building Equipment Furniture Acc. Depr.Building Acc. Depr.-Equipment Acc. Depr.- Furniture Patent Copyrights Goodwill Investment Accounts Payable Utilities Payable Salaries Payable Interest Payable Unearned Revenue Notes Payable Common Stock Retained Earnings Dividends Service Revenue Sales Revenue Cost of Goods Sold Rent Expense Salaries Expense Supplies Expense Utilities Expense Interest Expense Depr. Exp.-Equipment Depr. Exp.-- Furniture Depr. Exp.BuildingStep by Step Solution
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