MAKE JOURNAL ENTRIES (DR/CR)

ABC Hardware Store had the following transactions during the year starting January 1, 2020. At the beginning of 2020, the ledger of ABC showed Cash of 100,000 SR, opening inventory 12,000 SR (600 units at 20 SR per unit) and Owners Capital of 112,000 SR. (ABC Co. uses the FIFO method in inventory valuation). 1. ABC invested 40,000 SR cash in the business. 2. Purchased a truck from Mitsubishi Motors for 16,000 SR on credit. 3. Paid in advance 5,400 SR cash on a 3-year insurance policy effective January 1. 4. Paid 5,600 SR cash for employee salaries. 5. Paid 700 SR cash for the repair expenses for the truck. 6. Withdraw 6,000 SR cash for personal use. 7. On April 1, ABC purchased 1,000 units from Blaze Co., a supplier, for 30 SR per unit with a settlement discount of 5% if it paid the price within 10 days from the date of purchase. 8. On July 15, ABC purchased 1,400 units from Mohammed Co., a supplier, for 34 SR per unit with a settlement discount of 5% if it paid the price within 10 days from the date of purchase. 9. On August 1, ABC sold 1,200 units to Star Co. at a price of 60 SR per unit with a settlement discount of 4% if the price is received within 10 days from the date of sale. (The company is not expecting the customer to take the advantage of the discount). 10. On April 6, ABC paid the full amount due to Blaze Co. 11. On August 15, ABC paid the full amount due to Mohammed Co., 12. On October 1, ABC sold 200 units at 56 SR per unit to Noor Co. that paid the price in full at the time of the transaction.