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The following events apply to Nova Inc. for fiscal year 2019: 1) Borrowed $5,000 from the bank, issuing a 1-year note at 5%. 2) Paid
The following events apply to Nova Inc. for fiscal year 2019: 1) Borrowed $5,000 from the bank, issuing a 1-year note at 5%. 2) Paid dividends, $200. 3) Issued additional common stock, for $15,000. 4) Purchased merchandise on a cash basis, $9,000, FOB destination). 5) Paid $12,000 for one-year rent in advance. 6) Purchased merchandise on account for $25,000, under terms 2/10, n/30, FOB shipping point.) 7) Paid freight(which means shipping) $100 for purchase in Transaction # 6. 8) Sold merchandise on account, for $12,000, (with terms 1/15, n/30, FOB destination). The merchandise cost $8,000. 9) Paid freight, $250, for sale in Transaction #8. 10) Paid the bank principal plus interest on loan in Transaction # 1(assume you had the loan for a full year). 11) Returned defective merchandise to vendor, for $2,000, from purchase made in Transaction #6. (Extra credit - use the amount $2,000. do not worry about discounts) 12)Customer returned merchandise for $1,500, from the sales made in Transaction # 8. The merchandise cost $1,000. (Extra credit - same as above) 13)Paid vendor, within the discount period, the total amount owed for merchandise purchased in Transaction # 6. 14)Cash sales for a total of $8,000. The merchandise cost $5,000. 15)Collected from customer, within the discount period allowed, the sales on account from Transaction # 8. Required: Journalize the transactions in the General Journal. (30 pts.) US
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