Question
Need help creating T-accounts for these transactions. Journal Entry #1 Mason Automotive sells 10,000,000 shares at $5 par for $15 on January 1st, 2019. Journal
Need help creating T-accounts for these transactions.
Journal Entry #1 Mason Automotive sells 10,000,000 shares at $5 par for $15 on January 1st, 2019. Journal Entry #2 Ed Mason, the CEO, hires 4,000 employees, whom will receive a combined salary of $6.5 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019. Journal Entry #3 On January 1st, Mason Automotive receives $70 Million advance payment from a customer, Highland Inc., to manufacture 7,000 cars. Journal Entry #4 "Mason Automotive issues a bond payable on January 1st, 2019 with a face value of $500 Million at 98. The bond will have a useful life of 10 years with an interest payment of 8% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st, 2019.
(Note: When considering the amortization of the discount or premium, assume the straight line method is used). " Journal Entry #5 Mason Automotive purchased $6 Million dollars worth of supplies on account on January 2nd, 2019. 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.
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