The first pic is the November transactions, the second is the December transactions. Please complete the December transactions using only the accounts from the T-accounts pic. You may need to reference the November transactions in order to do the December ones. Also, the company sells products, not services.

8 NOVEMBER TRANSACTIONS (I suggest you PRINT this page so that you can utilize for your JE tab.) Date Transaction You found you have some U.S. Savings Bonds laying around from a grandparent. You decide to cash those in and receive $520, which you deposit in your personal bank account 8 You open a bank account for your business. 8 You purchases $500 of your own business's common stock. 11 Your business purchases paper and other office supplies for $95. (Use Supplies.) You start to gather some equipment to take with you when you begin your business. You have an excellent computer that is old, but works fine. You decides to start using it only for your new business. You estimate that the computer is currently worth $300, and you transfer the computer into the business in exchange for additional common stock. (Use "Computer" as the account type). 16 The company needs more cash to sustain its operations. Your parents lend the company $5,000 cash, in exchange for a two-year, 9% note payable. Interest and the principal are repayable at maturity. Your business pays $900 for additional equipment. FOR SERVICE COMPANIES: You schedule your first service performance for November 29. You will receive $100 on the date of the service. 15 17 18 FOR COMPANIES SELLING PRODUCTS: You order some merchandise from a wholesaler in the amount of $200 cash, shipping terms FOB Shipping Point, Freight costs amounted to $40. FOR SERVICE COMPANIES: You book a second service performance for December 5 for $150. You receive a $60 cash down payment, in advance. FOR SERVICE COMPANIES: You fulfill the obligation originated on Nov 18, booked on November 18, and collects the $100 cash. FOR COMPANIES SELLING PRODUCTS: You have your first sale in the amount of $100. These products originally costed you $50. You ship your product to your customer under the terms FOB Destination. Freight Costs amounted to $10 cash. Your CMO develop brochures for your business that the company will use for advertising. He/She charges the company $600 for his/her work payable at the end of December Your business pays $1,200 for a one-year insurance policy using cash. FOR SERVICE COMPANIES: You generate additional Service revenue, but your customer cannot pay today in cash. You issue the customer an invoice in the amount of $300. They said it will get paid some time in December 30 FOR COMPANIES SELLING PRODUCTS: You make another sale to customers in the amount of $300. These products originally costed you $150. Your sale to your customer is under the terms n/30 and FOB Destination. Freight costs amounted to $30. You receive a $50 invoice for use of your cell phone. You use the cell phone exclusively for your business. The invoice is for services provided in November and payment is due on December 15. (Use "Accounts Payable"). DECEMBER TRANSACTIONS suggest you PRINT this page so that you can utilize for your JE tab.) NOTE: Assume your company does not close its accounting records until the end of the calendar year (12/31). Date 1 9 14 Transaction FOR COMPANIES SELLING PRODUCTS ONLY: You purchase more merchandise from a wholesaler for $300 cash. Shipping terms are FOB Destination. Shipping costs amounted to $60. Your company receives a check for the full amount due from the customer for the sale from November 30. HINT FOR COMPANIES SELLING PRODUCTS. Is this collection of money within the discount period? Your business receives $750, in advance from customers for services/sales that will be performed during January You are getting overwhelmed and decide to hire an assistant You wait until the last day to finally pay the cell phone invoice outstanding at November 30. Issue a check to your CMO for the amount owed for the design of the website Additional revenue during the month amounts to $4,000. (You have not had time to account for each sale/service individually.) $3,000 in cash has been collected and $1,000 is still outstanding (This is in addition to the December 9 transaction) Additional supplies purchased during the month amount to $1,250 cash. Pay a dividend of $500 to the common shareholder (Yourself). You pay your assistant $8/hour for the amount worked in December. She has worked 4 hours per day for 10 days, since the date of hire. 15 16 23 23 28 31 Additional information for December is as follows: 2 A count reveals that $82 of your supplies were used. Depreciation is recorded on the equipment purchased in November. The computer has a useful life of 5 years and the equipment purchased on November 17th has a useful life of 10 years. Assume that 2 months' worth of depreciation is required. Interest on the 9% note payable is accrued. (Assume that 1.5 months of interest accrued during November and December.) Round to nearest dollar One month's worth of insurance has expired. You are unexpectedly telephoned on December 28 to perform your services/sell some of your products on the last day of December. In early January, your company will send an invoice for $450. FOR COMPANIES SELLING PRODUCTS: The products originally costed you $225 and your shipping terms are FOB Destination, terms 2/10, n/30. Freight costs amounted to $45. A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15. (Use "Accounts Payable"). Because of the unexpected sale on December 31, you recruit your assistant to help you. Your assistant worked 7 hours at a rate of $8 per hour. You've already processed payroll for December, so your assitant will not actually get paid until next month. December General Journal (if no entry is required, write "No Entry) Account Title and Explanation 12/1 1278 12/15 12/16 12/23 12/23 11228 December General Journal (If no entry is required, write "No Entry") Date Account Title and Explanation Debit Credit 12/31 12/31 12/31 TOTALS Cash Inventory Debit Credit Credit 500.00 240.00 95.00 50.00 150.00 16-Jan 5,000.00 18 29 30 900.00 240.00 10.00 1,200.00 30.00 40.00 Notes Payable Credit 5,000 S. 3,025.00 Supplies End Balance 5,000 Doble Credit Unearned Revenue 95.00 Deble 95.00 Computer End Balance Accounts Payable 300.00 300.00 50.00 600.00 son on Computer End Balance Debit Credit Accounts Payable 15 300.00 Debit 30 Balance 30 300.00 Equipment 50.00 600.00 650.00 Credit Debit 17 900.00 Advertising Expense Credit 600.00 Balance 900.00 Prepaid Insurance Credit 1,200.00 Debit 30 Jan 600.00 Common Stock Credit d Balance 500.00 300.00 800.00 End Balance Debit 29 30 1,200.00 Accounts Receivable Credit 100.00 300.00 + Debit 29 30 Cost of Goods Sold Credit 50 150 200 Sales Revenue nd Balance End Balance 400.00 Cell Phone Expense Credit Debit Debit reda 40 End Balance 100.00 200 Sales Revenue Debit Cell Phone Expense Credit 50.00 Debit 29 30 100.00 300.00 50.00 Freight-Out End Bala 400.00 Debit Credit 10.00 30.00 52 End Balance 40.00