Journal Entry #6

On January 2nd, Mason Automotive shipped an order to Panther Paws Corporation. The shipping terms were FOB shipping point and the value of the order was $95 Million and the inventory cost was $55 Million. Assume that this sale was made on account.

Journal Entry #7

Mason Automotive purchased $150 Million dollars worth of inventory on January 2nd, 2019. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.

Journal Entry #8

Mason Automotive buys a patent from Apple for $20 Million on January 3rd, 2019. The patent has a legal life and useful life were the same. Record the necessary entry as of January 3rd, 2019. Assume the patent was purchased using cash.

Journal Entry #9

Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $3.7 Million on January 3rd, 2019.

Journal Entry #10

Mason Automotive purchases fixed assets of $100 Million that will have a useful life of 10 years and a salvage value of $20 million on January 4th, 2019. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.

Journal Entry #11

On January 20th, Mason Automotive decides to purchase 500,000 shares of Treasury stock at $35 per share.