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I need assistance with these journal entries Seq. No. Date Transaction Description 1 Nov. 1 Company issues common stock 35,000 shares at $10 per share
I need assistance with these journal entries Seq. No. | Date | Transaction Description | ||
1 | Nov. 1 | Company issues common stock 35,000 shares at $10 per share with par value of $1 per share. | ||
2 | Nov. 1 | Takes a six-month short-term loan $30,000 from the bank with the interest rate 5%, with the principal and interest paid at maturity | ||
3 | Nov. 1 | Purchases a property as office space at $115,000 , in which $20,000 is the cost for the land and the remaining is the cost for the building. The estimated useful life of the building is 30 years and the residual value is $5,000 | ||
4 | Nov. 1 | Rents a warehouse and prepays the first month's rent $1,000 and security deposit $2,000 | ||
5 | Nov. 1 | Purchases a delivery truck for $33,000 by cash, with 5 years of estimated useful life and $3,000 residual value. The truck is estimated to be driven for 100,000 miles. | ||
6 | Nov. 2 | Issues 500 preferred stocks of par value $3 for $15 each; The annual dividend is 5%. | ||
7 | Nov. 2 | Purchases supplies by cash for $2,000 | ||
8 | Nov. 2 | Invests $10,000 in short-term investment | ||
9 | Nov. 2 | Pays for the insurance premium $3,000 for six months, starting from the current month | ||
10 | Nov. 3 | Receives cash advance $5,000 from customer Alpha for an order to be filled later | ||
11 | Nov. 3 | Purchase 1: 4,000 units @ $50 from supplier A (by cash) | ||
12 | Nov. 8 | Purchase 2: 1,000 units @ $55 from supplier B (50% paid immediately and the remaining is made on account) | ||
13 | Nov. 12 | Sells 2,000 units priced @ $75 (sold to customer Alpha, the remaining amount is paid in full by cash immediately) | ||
14 | Nov. 15 | Purchase 3: 1,600 units @ $60 from supplier A (made on account) | ||
15 | Nov. 16 | Lends $6,000 to a client by receiving a promissory note issued by the client with interest rate of 6% and maturity of six months. | ||
16 | Nov. 20 | Sells 2,400 units priced @ $78 (on account) to customer Beta | ||
17 | Nov. 22 | Sells 1,000 units priced @ 80 (by cash) to customer Gamma | ||
18 | Nov. 25 | 10 units from the sale on Nov. 22 are returned and customer Gamma gets full refund immediately | ||
19 | Nov. 29 | Repurchases 100 shares at $16 each for the purpose of issuing bonus to employees at the end of the year | ||
20 | Nov. 30 | Announces cash dividends to common stocks, with $0.10 per share (Ignore the dividends to preferred stocks), to be paid at the beginning of next year | ||
21 | Nov. 30 | Receives a bill from the bank for the month service charge $100 | ||
22 | Nov. 30 | Selling expense accrued in the month is $2,000 and paid in full | ||
23 | Nov. 30 | Administrative expense for the month is $1,500 and paid in full | ||
24 | Nov. 30 | Pays the utility bill for current month by cash $500 | ||
25 | Nov. 30 | Accrue salary expense $8,000 for the month, which will be paid at the beginning of the next month | ||
26 | Nov. 30 | Pays for the bank service charge by cash | ||
27 | Nov. 30 | Receives interest in cash from the short-term investment for the month $240 | ||
28 | Nov. 30 | Supplies amount to $800 at the end of the month | ||
Additional Information | Method to estimate bad debt expense: | 3% Net Credit Sale | ||
Depreciation method for the property: | DDB | |||
Depreciation method for the delivery truck: | S-L | |||
Perpetual inventory with: | FIFO | |||
The income tax rate is 30% |
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