Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Record the following entries in general journal form for December, 2019: 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, 2019:

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. W. Forest Mills, Inc. using the net method for accounting for sales.

December 3: 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 4000 shares of restricted stock to its CFO. The stock has a fair value of $112,000. The service period related to this restricted stock is 4 years. Vesting occurs if the CFO stays with the company for 4 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 18: Paid off short-term note of $71,640, payment includes interest of $3,562.

December 20: Recorded sales on account of $113,000, cost of merchandise inventory was $75,000

December 24: Sold 2,500 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Auditing Corporate Culture A Maturity Model Approach

Authors: Angelina K. Y. Chin, CIA, CRMA, CPA

1st Edition

1634540719, 978-1634540711

More Books

Students also viewed these Accounting questions