Journalize each of the following transactions that occurred during the month of December. Record the journal entries using proper formatting. Do not forget dates and explanations for each transaction. Use the account names given above. If an account you need is not listed then create a new account. On December 1, the company purchased a one year fire insurance policy for $120,000. The company debited insurance expense for the entire amount.

On December 1, the company paid the rent for December as well as the rent for January and February of the following year in the amount of $450,000.

On December 7, the company purchased inventory on account at a cost of $200,000, terms 2/10, n/30. The company uses the perpetual inventory system.

On December 7, the company collected $1,800,000 from customers on account.

On December 11, the company loaned a supplier $300,000 signing a note requiring principal and interest of 12% to be paid on December 10 of the following year.

On December 15, a customer paid the company $200,000 for trees to be delivered in the spring of the following year.

On December 16, the company issued 250,000 shares of $10 par common stock for $30 per share.

On December 16, the company borrowed $500,000 from a local bank and signed a note requiring interest to be paid annually on December 15 at 6%. The principal is due in 5 years.

On December 17, the company paid $100,000 of the amount on account for the inventory purchased on December 7. If a discount is to be taken, reduce inventory by the amount of the discount.

On December 18, the company paid the entire amount owed on the bonds payable.

On December 19, the company sold equipment costing $1,500,000 and associated accumulated depreciation of $300,000 for $800,000.

On December 20, the company purchased $2,000,000 in equipment and a building costing 1,000,000, paying cash.

On December 21, the company purchased a piece of land for investment purposes only for $5,000,000, paying cash.

On December 22, the company sold one of its operating divisions, which qualified as a separate component according to GAAP. The division was sold for a net selling price of $1,600,000. On this date the division net assets held-for-sale had a book value of $1,500,000. For the period January 1 through disposal, the division reported pre-tax loss on income from operations of $400,000. Neither the loss on disposal nor the operating income is included in the before-tax income the company generated from its other divisions. Record the sale of the division only.

On December 23, the company communicated to employees that the company was restructuring and that underperforming stores in Alaska would be closing at the end of December. Record the liability and corresponding expense of $50,000 for employee termination benefits.

On December 26, the company made an investment by purchasing $2,000,000 of ABC Corporations bonds.

On December 28, the company made an investment by purchasing $3,000,000 of XYZ Corporations common stock.

Credit sales for the month totaled $400,000. The cost of the goods sold was $100,000.

Cash sales for the month totaled $1,200,000. The cost of the goods sold was $300,000.