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JOURNAL ENTRIES & ADJUSTING ENTRIES organized on January 1, 2021. authorized to issue 30,000 shares of $1 par value common stock. November 30, 2021, 20,000

JOURNAL ENTRIES & ADJUSTING ENTRIES

organized on January 1, 2021. authorized to issue 30,000 shares of $1 par value common stock. November 30, 2021, 20,000 shares were outstanding. The following are transactions for the current fiscal year ending December 31, 2021: On December 1, issued an additional 5,000 shares at a market price of $2.50 per share.On December 1, purchased & placed into service a large delivery truck for $86,384 (including sales taxes) by issuing a 3-year, $100,000, zero-interest- bearing note to Scott Croft Toyota. The truck has a 5-year useful life. uses straight-line method for depreciation & effective-interest method for amortization.During December, cash sales totaled $588,500, which includes the 7% sales tax that must be remitted to the state. December 20, one customer paid $214, which includes the 7% sales tax that must be remitted to the state, for a prescription that was to be delivered on January 3, 2021. monthly payroll for December of $25,000 included $1,912 withheld for FICA taxes, $3,750 withheld for federal income taxes, and $960 withheld for state income taxes. 5 employees earned 2 weeks of vacation pay during 2021. average monthly salary per employee is $5,000.During 2021, a 12-year-old female patient was given 100mg pills of a well-known drug for treating depression; however, the prescription was only for 10mg pills. In December 2021, the patients parents filed a suit for wrongful dosage. Although the patient did not have any clear permanent injuries, the lawsuit claimed $1 million for pain and suffering. Attorneys have determined that it is probably they will lose the case & that a reasonable estimate of the damages range $250,000 - $400,000.On December 10, purchased $45,000 (including sales tax) of drugs inventory from a vendor on account. On December 19, purchased 2.000 shares of treasury stock at $3 per share. uses the cost method to account for treasury stock.On December 21, Board of Directors declared a $0.15 cash dividend per share to stockholders of record on December 30, 2021. The dividend is to be paid on January 15, 2022.

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