Question
Record the following entries in general journal form for December, 2018: December 1: Purchased Land for a future building site for $500,000, paying $100,000 down
Record the following entries in general journal form for December, 2018:
December 1: Purchased Land for a future building site for $500,000, paying $100,000 down and signed a 5%, 90-day note for the balance.
December 3: Recorded sales on account of $45,000, 2/15, net 30. Cost of inventory was 23,500. JPJones using the net method for accounting for sales.
December 4: Bought back 5000 shares of stock for $20 per share.
December 4: Purchased 40,000 worth of equipment, 5 year life, $5,000 salvage value, for cash. Equipment will be depreciated using the straight-line method of depreciation.
December 5: Issued 5000 shares of restricted stock to its CFO. The stock has a fair value of $72,000. The service period related to this restricted stock is 3 years. Vesting occurs if the CFO stays with the company for 3 years. The par value of the stock is $1.
December 8: Purchased inventory of $44,000 on account and paid $30,000 on separate account.
December 15: Recorded cash sales of $24,000, cost of merchandise inventory was $14,900.
December 16: Issued 1,000 shares of common stock at $16.00 per share
December 17: Received payment related to sale on December 3.
December 20: Recorded sales on account of $113,000, cost of merchandise inventory was $75,000
December 24: Sold 2500 shares of Treasury Stock for $23 per share.
December 26: Wrote off 3,500 in bad debt.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started