Double entry

3.Cai hou is a listed company, Trial balance by the end of year 2009 is as follows. Please journalize the following transactions in 2010 (60marks) On July 1, 2010 Cai hou sold an equipment for $4000(cash was received) and that sold equipment cost $25000 and has accumulated depreciation of $17000 at December31 of the prior calendar year-end. Annual depreciation on this equipment is $5000 computed using straight-line depreciation. (4marks) 2 On July 1, 2010 Cai hou purchased an equipment of $40000 by cash with an eight-year useful life and no salvage value. Cai hou used Straight-Line Method to calculate depreciation expense. (3marks) On October 5, 2010 Cai hou purchased 10 units merchandise D of $13000 on credit from supplier Y, and paid $2000 freight charge to a carrier by cash (3marks) + On October 6,2010 Cai hou purchased 20 units merchandise D of $27000 on credit from supplier W (3marks) 5. On October 10, 2010 Cai hou sold 8 units merchandise D for $21600 to customer E on credit with the terms of 2/10,n/30.Cai hou used First in First Out method to assign costs to inventory and to cost of goods sold (5marks) On October 11,2010 Cai hou sold 20 units merchandise D for $56000 to customer Q on credit with the terms of 2/10,n/30.Cai hou used First in First Out method to assign costs to inventory and to cost of goods sold (5marks) 1 On October 12,2010 Cai hou received a $5600 debit memorandum for an allowance of defective merchandise D from customer Q (3marks) merchandise D from customer Q (3marks) On October 15,2010, Cai hou collected cash of $49392 from customer Q and gave customer Q 2% discounts (5marks) On October 16,2010, Cai hou made payment of $10000 by cash for next five year(2011-2015) rental fee (3marks) 10. On October 18,2010, Caihou collected $8000 from customer A to pay all his debts. Cai hou wrote off bad debt of $1000. Cai hou also agreed to accept a $6000, 90-day, 15% note from customer B to settle her $6500 past-due account. Cai hou also wrote off bad debt of $500. (5marks) 11. On November 2010, Cai hou purchased a patent costing $27000 with a useful life of 10 years by cash (3marks) 12 On November 2,2010, Cai hou made payment of $2000 for ordinary repair cost of the equipment by cash (3marks) 13. On December 31,2010, Cai hou accrued employee salary of $2200 and liabilities for this employee (ignoring all the relative tax) (3marks) 14 On December31,2010 Cai hou received customer PP advance payment of $20000 for merchandise D that has not been delivered to customer PP (4marks) 1s On December 31,2010 Caihou accrued depreciation expense of for equipment accrued amortization expense of for patent (8marks)