The following transactions were entered into by the Dewey Appliance Company

during the month of December.

A$.$ On December $6,$ Dewey received a deposit from Heidegger Company for a refrigerator

to be used at a charity cookout. The deposit of $$3,000$ will be returned when the

refrigerator is returned, most likely in early January.

B$.$ The Company recorded cash sales of $$621,000$ during December. This amount

includes $8\%$ sales tax that must be remitted to the state by the $15$th of the following

month.

C$.$ On December $10,$ the Company borrowed $$100,000$ from the Strauss Company. The

loan carries a $12\%$ interest rate, is due in one year, and interest is due when the note

is paid.

D$.$ On December $15,$ the Company purchased a delivery truck for $$45,000,$ paying

$$10,000$ in cash and signing a one$-$year, $15\%$ note for the balance.

Instructions:

a$.$ Prepare journal entries for the transactions listed above.

b$.$ Assuming Dewey$$s year$-$end is December $31,$ prepare adjusting journal entries for the

transactions which require adjustment.