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Please help me post journal entries for the following transactions: The Michigan Flyer Wholesale Building Products Company began operations on January 1, 2022. During the
Please help me post journal entries for the following transactions:
The Michigan Flyer Wholesale Building Products Company began operations on January 1, 2022. | |||||||||||||||||
During the month of January 2022, the following transactions occurred: | |||||||||||||||||
a. | On January 1st, Scott Jones and Evie Lawson each invest $50,000 cash in the corporation in exchange for 5,000 shares of common stock. | ||||||||||||||||
b. | On January 1st, equipment is purchased for $15,000 cash. | ||||||||||||||||
c. | On January 1st, $3,500 in monthly rent on a building is prepaid for the months of January and February. | ||||||||||||||||
d. | On January 6th, office supplies are purchased on account for $850. | ||||||||||||||||
e. | On January 10th, merchandise inventory costing $55,000 is purchased on account. The company uses the perpetual inventory system. | ||||||||||||||||
f. | On January 25th, $25,000 is borrowed from a local bank, and a note payable is signed. | ||||||||||||||||
g. | On January 27th, a customer deposits $2,200 for February delivery of shipment of lumber. | ||||||||||||||||
h. | Sales on account for the month of January are $57,000 . The cost of merchandise sold is $28,500. Record the transaction on January 30th. | ||||||||||||||||
i | On January 30th, $15,000 is collected on account from customers. | ||||||||||||||||
j. | On January 30th, $20,000 is paid on account to vendors. | ||||||||||||||||
k. | Salaries of $3,500 are paid to employees for January. Federal withholding is $900, state withholding is $450, Social sScurity is 6.2%, and Medicare is 1.45% of gross wages. Record the transaction on January 30th. | ||||||||||||||||
l. | On January 31st, a bill for $1,500 is received from the local utility company for the month of January. | ||||||||||||||||
m | On January 31st, a customer has requested that the company convert his account receivable of 20,000 to a note and the company agrees. | ||||||||||||||||
n | On December 15, 2021, the corporation declared cash dividends of 1,000, payable on January 31st of 2022. Record the payment of the previously declared cash dividend on January 31st. | ||||||||||||||||
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