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Please provide journal entries for the following: Seg. No. Date Transaction Description Company issues common stock 50,000 shares at $12 per share with par value
Please provide journal entries for the following:
Seg. No. Date Transaction Description Company issues common stock 50,000 shares at $12 per share with par value of $0.01 per share. Nov. 1 2 Nov. 1 3 Nov. 1 4 Nov. 1 5 Nov. 1 bono Takes a six-month short-term loan $25,000 from the bank with the interest rate 10%, with the principal and interest paid at maturity Purchases a property as office space at $145,000, in which $50,000 is the cost for the land and the remaining is the cost for the building. The estimated useful life of the building is 30 years and the residual value is $5,000 Rents a warehouse and prepays the first month's rent $1,500 and security deposit $3,000 Purchases a delivery truck for $33,000 by cash, with 6 years of estimated useful life and $3,000 residual value. The truck is estimated to be driven for 100.000 miles Issues 800 preferred stocks of par value $3 for $15 each; The annual dividend is 5%. Purchases supplies by cash for $3,000 Invests $5,000 in short-term investment Pays for the insurance premium $3,000 for six months, starting from the current month Receives cash advance $15,000 from customer Alpha for an order to be filled later Purchase 1: 2,500 units @ $50 from supplier A (by cash) Purchase 2: 500 units @ $55 from supplier B (50% paid immediately Lif and the remaining is made on account) Sells 1,500 units priced @ $75 (sold to customer Alpha, the remaining amount is paid in full by cash immediately) Nov. 2 Nov. 2 7 8 Nov. 2 9 Nov. 2 10 11 Nov. 3 Nov. 3 12 Nov. 8 13 Nov. 12 14 Nov. 15 15 16 17 Nov. 16 Nov. 20 Nov. 22 18 Nov. 25 Nov. 29 26 21 22 23 24 next year Purchase 3: 1,300 units @ $60 from supplier A (made on account) Lends $6,000 to a client by receiving a promissory note issued by the client with interest rate of 12% and maturity of six months. Sells 1,700 units priced @ $78 (on account) to customer Beta Sells 500 units priced @ 80 (by cash) to customer Gamma 50 units from the sale on Nov. 22 are returned and customer Gamma gets full refund immediately Repurchases 500 shares at $16 each for the purpose of issuing bonus to employees at the end of the year Announces cash dividends to common stocks, with $0.10 per share (Ignore the dividends to preferred stocks), to be paid at the beginning of Receives a bill from the bank for the month service charge $100 Selling expense accrued in the month is $3,000 and paid in full Administrative expense for the month is $3,500 and paid in full Pays the utility bill for current month by cash $500 Accrue salary expense $10,000 for the month, which will be paid at the beginning of the next month Pays for the bank service charge by cash Receives interest in cash from the short-term investment for the month $200 Supplies amount to $500 at the end of the month Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 25 26 Nov. 30 Nov. 30 27 28 Nov. 30 Nov. 30 Method to estimate bad debt expense: Depreciation method for the property: Additional Information Depreciation method for the delivery truck: Perpetual inventory with: The income tax rate is 30% 5% AVR S-L DDB LIFO Step by Step Solution
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