On November 30, 2016, Davis Company had the following account balances:

DebitCreditCash$3,090Accounts Receivable9,900Allowance for Doubtful Accounts$100Inventory17,750Supplies1,400Land9,000Buildings and Equipment42,000Accumulated Depreciation4,200Accounts Payable10,700Common Stock20,000Retained Earnings (1/1/2016)42,400Dividends2,000Sales Revenue69,700Cost of Goods Sold36,860Salaries Expense12,500Advertising Expense8,100Other Expenses4,500During the month of December, Davis entered into the following transactions:

DateTransactionDec. 4Made cash sales of $3,000; the cost of the inventory sold was $1,800.7Purchased $2,400 of inventory on credit.14Collected $900 of accounts receivable.18Sold land for $7,800; the land originally cost $5,000.20Made credit sales of $4,000; the cost of the inventory sold was $2,400.21Returned $360 of defective inventory to supplier for credit to the Davis Company's account.27Purchased $1,250 of inventory for cash.28Paid $1,100 of accounts payable.31Purchased land at a cost of $6,000; made a $1,000 down payment and signed a 12%, 2-year note for the balance.Required:1.Prepare general journal entries to record the preceding transactions.2.Post to general ledger T-accounts.3.Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information:a. accrued salaries at year-end total $1,200;b. for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with no residual value;c. supplies on hand at the end of the year total $630;d. bad debts expense for the year totals $830;e. the income tax rate is 30%; income taxes are payable in the first quarter of 20174.Prepare the company's financial statements for 2016.5.Prepare the 2016 (a) adjusting and (b) closing entries in the general journal.

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General Journal

Prepare general journal entries to record the December transactions.

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GENERAL JOURNAL

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