Journal Entry for a company ending April 30,2018 Transactions

1. 1/17/2018 Received a loan of $30,000 from the bank.

2. 1/28/2018 Paid $1,830 in cash to purchase display equipment for the car showroom

3. 04/14/2018 Puchased a building for office and retail space for $480,300. They paid 20% down in cash and signed a long-term mortgage note for the rest.

4. 3/17/2018 The company purchased a six month insurance policy and paid cash in advance of $4,960

5. 2/17/2018 Purchased car inventory on account for $87,900.

6. 2/19/2018 car sales recorded to a local car community, sold on account for $60,569.

7. 04/22/2018 Paid $90,000 of the Account Payable for the car inventory to the supplier.

8. 02/20/2018 The company received a cash payment of $20,900 from the local car community

9. 03/31/2018 Car sales in cash for February and March were $79,900

10. Cost of Goods Sold for the February and March sales (cash and credit) were $49,500

11. Salaries and wages expense for Feb and March combined was $27,000. Of this total, $20,000 was paid in cash and $7,000 will be paid in May.

12. 03/14/2018 The company records depreciation monthly. The building has a useful economic life of 40 years and the company uses the straight line depreciation method.

13. 02/ 25/ 2018 The company records depreciation monthly. The display equipment has a useful economic life of 10 years and the company uses the straight line depreciation method. 14. 4/01/2018 Insurance expense for Feb and March combined is 1/3 of the amount paid in advance