DXC Texhnology offers technological solutions to Pfizer. DXC Technology prepares the adiusting entries on monthly base. Please journalize the transactions below. (40 points) 1. On March I" 2019, DXC Technology purchased a notes payable of 500.000 USD with an annual interest cate of 10%. This notes payable will be repaid together with the interest expenses on February 28, 2020. a. Prepare the journal entry for March I" 2019 b. Prepare the joumal entry for December 31t,2019 c. Prepare the journal entry for February 28t,2020 d. If the paymeat date was 1 of March 2020 , how would you prepare your joumal entry? 2. On Nevember 1 - 2019 Pfizer made a payment of 160.000 USD for the services that will be offered for the next four moaths. a. Prepare the journal entry for 1a of November for Pfizer journal (Pfizer also prepares its adjusting entrics on yearly hasis). b. If during the first three month DXC Technology has offered 150,000 USD what should you journal entry look, like on 29 of February for the DXC Technology books? 3. DXC Technology purchased its machineries on 1 of January 2017 for 800.000 USD and it will be used for 7 years. a. Calculate the balance of Accumulated Depreciation on 1" of January of 2019. (The adjusting entries just for this example are done on yearly basis) The depreciation for I year can be found by dividing the value of the machinery with its usefal life. Accumulated depreciation for 1 year = Since 2019, two years have passed so it is the depreciation for 2 years b. Prepare the adjusting entry for December 312019. (The adjusting entries just for this example are done on yearly basis) PART 2: Periodic and Perpetual Inventory System 1. The company uses periodic inventory system and some information about the company such as: Inventory on hand on 31 December 2018 is $5.000 During 2019, purchises of merchandise is $12.000 Inventory on hand on 31 December 2019 is $600 Pease compute the Cost of Goods sold for 2019 and make required journal entry on December 31.2019. cogs2019= 1. Globe (company) sells eleetronic devices to individuals. During December, the company made transactions as follows: Prepare journal entries of Globe (company) for December 1, December 2, December 4, December 5 and December 12 . For December 1n and December 2 use subsidiary ledger accounts. Assume that the company uses the peroetuol inventory system in sales and gross method in purchases. (35 points) December 1 Company sold 10 compaters to Epoka University at $150 each on aceount with the term 4/10,n/30. The cost of the tablet is $120 each. 12010=1200 and 15010=1500 December 2 Epoka University retumed 4 tablets to Globe due to some defects on them. December 4 Company purchased some computers on account from Shpresa al, for $0,000. Credit Terms are, 610n/60. December 5 Epoka University paid for the purchase of December I December 12 Commanv naid in Shresesa Al for the nurchase dued Decemher 4
