Prepare JOurnal Entries, Trial Balance,Balance Sheet, Profit and Loss, Statement of RE and Statement of Cash Flow Transaction Description Company issues common stock No. Date Nov. 1 110,000 shares at S11 per share with par value of S1 per share. Takes a six-month short-term loan $55,000 from the bank with the interest rate 12%, with the principal and interest paid at maturity Purchases a property as office space at S175,000, in which S60,000 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 $6,000 Rents a warehouse and prepays the first month's rent $6,000 and security deposit S12,000 Purchases a delivery truck for S63,000 by cash, with 10 years of Nov. 1 3 Nov. 4 Nov. 5 estimated useful life and S3,000 Nov. 1 residual value. The truck is estimated to be driven for 100,000 miles. Issues 1,800 preferred stocks of 6 Nov. 2 par value S3 for S15 each; The 7 Nov. 2 s5,000 8 Nov.2 investment 9 Nov. 2 S6,000 for six months, starting annual dividend is 5%. Purchases supplies by cash for Invests $25,000 in short-term Pays for the insurance premium from the current month Receives cash advance $15,000 to be filled later I1 Purchase 1: 6,000 units @ SS0 Nov. 3 from supplier A (by cash) Purchase 2: 1,500 units a S55 from supplier B (50% paid immediately and the remaining is made on account) Sells 3,000 units priced a $75 12 Nov. 8 13 Nov. 12 (sold to customer Alpha, the remaining amount is paid in full by cash immediately) Purchase 3: 2,400 units@ $60 14 Nov. 15 from supplier A (made on account) Lends S36,000 to a client by receiving a promissory note 15 Nov. 16 issued by the client with interest rate of 12% and maturity of six months. Sells 3,600 units priced $78 (on account) to customer Beta Sells1,500 units priced a 80 (by cash) to customer Gamma 300 units from the sale on Nov 22 are returned and customer Gamma gets full refund 16 Nov. 20 17 Nov. 22 18 Nov. 25 Repurchases 1000 shares at S16 each for the purpose of issuing bonus to employees at the end of the year Announces cash dividends to common stocks, with S0.10 per 19 Nov. 29 20 Nov. 30 share (Ignore the dividends to preferred stocks), to be paid at the beginning of next year 21 Nov. 30 Receives a il from the bank for 22 Nov. 30 Selling expense accrued in the 23 Nov. 30 the month service charge S500 month is $6,000 and paid in full Administrative expense for the month is $5,500 and paid in full 20 Nov. 30 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 22 Nov. 30 Selling expense accrued in thoe the month service charge $500 month is $6,000 and paid in full Administrative expense for the month is $5,500 and paid in full Pays the utility bill for current month by cash $1,500 Accrue salary expense $30,000 23 Nov. 30 24 Nov. 30 25 Nov. 30 for the month, which will be paid at the beginning of the next month Pays for the bank service charge 26 Nov. 30 by cash Receives interest in cash from the month $600 end of the month 27 Nov. 30 short-term investment for the 28 Nov. 30 Supplies mount to S1,500 at the Method to estimate bad debt expense: Depreciaion method for the property 5% AR DDB Units-of Activity (The truck was driven for 1,500 miles during this month) WA Additional Information Depreciation method for the delivery truck Perpetual inventory with: The income tax rate is 30%