Prepare Journal Entries

1 Nov. 1 Company issues common stock 50,000 shares at $12 per share with par value of $0.01 per share.

2 Nov. 1 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

3 Nov. 1 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

4 Nov. 1 Rents a warehouse and prepays the first month's rent $1,500 and security deposit $3,000

5 Nov. 1 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.

6 Nov. 2 Issues 800 preferred stocks of par value $3 for $15 each; The annual dividend is 5%.

7 Nov. 2 Purchases supplies by cash for $3,000

8 Nov. 2 Invests $5,000 in short-term investment

9 Nov. 2 Pays for the insurance premium $3,000 for six months, starting from the current month

10 Nov. 3 Receives cash advance $15,000 from customer Alpha for an order to be filled later

11 Nov. 3 Purchase 1: 2,500 units @ $50 from supplier A (by cash)

12 Nov. 8 Purchase 2: 500 units @ $55 from supplier B (50% paid immediately and the remaining is made on account)

13 Nov. 12 Sells 1,500 units priced @ $75 (sold to customer Alpha, the remaining amount is paid in full by cash immediately)

14 Nov. 15 Purchase 3: 1,300 units @ $60 from supplier A (made on account)

15 Nov. 16 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.

16 Nov. 20 Sells 1,700 units priced @ $78 (on account) to customer Beta

17 Nov. 22 Sells 500 units priced @ 80 (by cash) to customer Gamma

18 Nov. 25 50 units from the sale on Nov. 22 are returned and customer Gamma gets full refund immediately

19 Nov. 29 Repurchases 500 shares at $16 each for the purpose of issuing bonus to employees at the end of the year

20 Nov. 30 Announces cash dividends to common stocks, with $0.10 per share (Ignore the dividends to preferred stocks), to be paid at the beginning of next year

21 Nov. 30 Receives a bill from the bank for the month service charge $100

22 Nov. 30 Selling expense accrued in the month is $3,000 and paid in full

23 Nov. 30 Administrative expense for the month is $3,500 and paid in full

24 Nov. 30 Pays the utility bill for current month by cash $500

25 Nov. 30 Accrue salary expense $10,000 for the month, which will be paid at the beginning of the next month

26 Nov. 30 Pays for the bank service charge by cash

27 Nov. 30 Receives interest in cash from the short-term investment for the month $200

28 Nov. 30 Supplies amount to $500 at the end of the month

Additional Information Method to estimate bad debt expense: 5% A/R

Depreciation method for the property: S-L

Depreciation method for the delivery truck: DDB

Perpetual inventory with: LIFO

The income tax rate is 30%