Selected transactions recorded by the Joell Company are presented below. Describe the events that took place that resulted in the journal entry provided. Be certain to give a complete description of the underlying events, including the dollar amounts involved. Joell Company's fiscal year ends on December 31. When writing your answer, be sure to clearly delineate which event you are referring to (i.e., "Event A," "Event B," etc.). An example is provided below.

Example

Jan. 4	Cash	$24,000
	Common stock		$24,000
Answer:
Issued common stock and received cash of $24,000

Events to describe

Event A	Cash	$4,200
	Accounts receivable	$16,000
	Sales		$20,200
Event B	Accounts payable	$800
	Supplies		$800
Event C	Prepaid insurance	$4,000
	Cash		$4,000
Event D	Cash	$6,000
	Accumulated depreciation	$18,000
	Equipment		$20,000
	Gain		$4,000
Event E	Cash	$24,000
	Unearned rental revenue		$24,000
Event F	Cost of goods sold	$1,200
	Inventory		$1,200

Depreciation accounting can be troubling. If depreciation is a real economic phenomenon, then why is it acceptable to arbitrarily select from different methods? An individual wanting to measure air pressure in a tire would presumably seek a gauge that would reliably and accurately measure air pressure. Yet, an accountant will freely select from among different depreciation gauges that produce widely different measures of depreciation.