- Prepare the journal entries for the transactions listed.
Note:
1. Do not use $ symbols in any of the entries
2. Do not use the words Dr. or Cr. in the journal entries
3. When writing the amounts please use commas and pennies.
4. Instead of using a date for each transaction, simply use the number corresponding to the transaction below
5.Do not use any account numbers for these transactions
6. Skip one single blank line in between each journal entry.
7. Do not write any descriptions for the jounal entries.
- None of the following entries are related. Don't try to connect them to each other, simply record the journal entry based on the information contained in each individual transaction.
TRANSACTIONS: (Each transaction is worth four (4) points) 1. The company purchased $50,000 merchandise inventory on account terms 2/10, n/30. The company uses the periodic method of inventory 2. The company sold merchandise costing $40,000 for $100,000 cash. The company uses the perpetual method of inventory 3. The company loaned $10,000 to an employee with interest at 2%. The loan is due in sixty days. 4. The company record depreciation expense for 12 months on equipment it previousiy purchased in the amount of $500,000 with a salvage value of $50,000 and an estimated useful life of 10 years. The company uses the straight line method The company purchased a copyright by singing a note payable in the amount of $800,000 The company recorded a bad debt expense in the amount of $50,000 using the direct write off method The company collected $10,000 cash on an account receivable that had been previously written off using the allowance method The company issued preferred stock in the amount of $50,000 in exchange for a note payable it owed a vendor The company made a cash principal payment on a note payable in the amount of $10.000 plus the interest expense that was due at the time of payment in the amount of $1,000. The interest expense had been previously accrued for The company received cash in the amount of $88,000 representing payment of a note receivable and $8,000 of interest income that had not been previously accounted for The company paid cash in advance for 24 months of insurance in the amount of $55,000 The company received $85,000 cash from a new customer in advance for printing services it would receive from the company next year The company paid $25,000 cash for mining rights to a diamond mine The company record amortization expense on a patent it previously purchased in the amount of $900,000 using the straight line method. The life of the patent was 20 years The company returned $5,000 of merchandise inventory it previously purchased on account, but had not yet paid for, because it was defective The company received $110,000 cash for payment in full for an account receivable in the amount of $115,000 net of the discount taken by the customer The company earned $50,000 of service revenue in the current month that was previously recorded as a deferred liability The company paid $50,000 cash, net of a $5,000 discount, for an invoice previously record as an accounts payabie. The company uses the perpetual method of accounting The company reserved $10,000 of bad debt expense using the allowance method The company accrued income tax expense in the amount of $30,000 The company paid a cash dividend on its 10,000 shares of preferred stock at 8% The company sold furniture it owned with a historical cost of $100,000 and accumulated depreciation of $80,000 for $10,000 cash and a $5.000 note receivable due in 30 days The company estimated the current month warranty expense payable at $45,000 for equipment sales it made in the current month The company computed that $1,500,000 worth of diamonds this month were extracted from a mine it previously purchased the rights to for $21 The company issued a long term bond payable in exchange for $5,000,000 cash. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. ,000,000
