th Dec. 1 ACC 311 Spring 2020 Cycle Problem Transactions The following transactions took place during the month of December, 2019. Paid $7,500 to cover rent for December, January, February, and March Paid an annual premium of $8,400 for business insurance Received $16,500 from a customer to satisfy a balance from sales in September Paid $28,500 for display cases and other store fixtures. Borrowed $20,000 from the bank, signing a 3-year, 5.8% promissory note. Purchased $48,000 of merchandise from Gilbert Company with terms 2/10, n/30 Purchased merchandise for $23,000 cash. 10 Returned damaged merchandise to Gilbert Company received credit for $17,000. Investors paid a total of $30,000 to purchase 20.000 shares of the company's $.80 par value common stock. 12 13 Sold merchandise to R.J. Anderson on account, $28,000 with terms 2/10, net/30. Received and paid telephone bill in the amount of $425 for December service. Completed a $9,700 credit sale to Ben Jackson with terms 1/10, n/30. 14 Paid the balance due to Gilbert Company. 15 Received $2,000 of merchandise returned by Ben Jackson. 16 Purchased $18,000 of merchandise from Leo Company with terms 1/10, n/30. 18 A company that owed us $1,100 filed bankruptcy. The account was written off. Bought $530 of supplies on account. 19 20 Sold merchandise on account to Martha Conner for $26,000, terms 2/15, n/30. 20 Received payment in full from Ben Jackson. 24 Received a $385 bill for electricity used in December. 28 Received a check from R.J. Anderson for payment in full. 28 Recorded cash sales for December totaling $39,600. 29 Paid half of the amount owed to Leo Company. Improve It declared and paid a $.16 per share cash dividend. (One simple entry) 31 Improve It, Inc. General Journal Page 1 Dec 2019 Post Ref. Credit Debit 7500 prepaich Rent 100 1588 5900 Improve it, Inc. General Journal Page 2 Dec 2019 Post Ref. Debit Credit W Improve it, Inc. General Journal Page 3 Post 2019 Ref. Debit Credit RRPPP Account Number 82%PPT Account Name Cash 2019 Dato Description Post Ref 100 Balance 46,440 Debit Credit Account Number Account Name Accounts Receivable 2019 Post Date Description Ref. 110 Balance 31,480 Debit Credit Account Number Account Name Allowance for Bad Debts 2019 Post Date Description Ref. 130 Balance 750 Debit Credit Account Number 150 Account Name Office Supplies 2019 Post Date Description Ref Balance 650 Debit Credit Account Number 155 Balance Account Name Prepaid Insurance 2019 Post Date Description Ref. Debit Credit Account Number 160 Balance Account Name Prepaid Rent 2019 Date Description Post Ref. Debit Credit Account Number Account Name Inventory 2019 Date Description Post Ref. 170 Balance 17,750 Debit Credit Account Name Store Fixtures 2019 Date Description Post Ref. Account Number 175 Balance Debit Credit Account Name Accounts Payable 2019 Post Date Description Ref. Account Number 200 Balance Debit Credit2,250 Account Nurnber 2 10 Balance SYMY Account Name Notes Payable 2019 Post Date Description Ref. Debit Credit Account Number 300 Account Name Common Stock 2019 Post Date Description Ref. Debit Credit Balance 50,000 Account Name Additional Paid in Capital Account Number 310 2019 Post Balance Date Description Ref. Debit Credit 2 5,000 Account Number Account Name Dividends 2019 Date Description Dec Post Ref. 330 Balance Debit Credit Account Number Account Name Retained Earnings 2019 Post Date Description Ref 350 Balance 18,320 Debit Credit Account Number Account Name Sales 2019 Date Description 400 Balance Post Ref Debit Credit Account Number Account Name Sales Discounts 2019 Post Date Description Ref. 410 Balance Debit Credit Account Number Account Name Sales Returns 2019 Post Date Description Ref. 415 Balance Debit Credit Account Number Account Name Utilities Expense 2019 Post Date Description Ref 650 Balance Debit Credit Account Number Account Name Purchases 2019 Date Description 700 Balance Post Ref. Debit Credit Account Number Account Name Purchase Returns 2019 Post Date Description Ref. 710 Balance Debit Credit Account Number Account Name Purchase Discounts 2019 Post Date Description Ref. 715 Balance Debit Credit Trial Balance Debit Credit Adjustments Debit Credit Adjusted Trial Balance income Statement Debit Balance Sheet Cash Accounts Receivable Allowance for Bad Debts Office Supplies Prepaid Insurance Prepaid Rent Inventory Store Fixtures Accounts Payable Notes Payable Common Stock Additional Paid in Capital Dividends Retained Earnings Sales Sales Discounts Sales Returns Utilities Expense Purchases Purchase Returns Purchase Discounts 7
