Transaction Description

Company issues common stock $30,000$ shares at $$10$ per share with par value of $$1$ per share.

Takes a six$-$month short$-$term loan $$40,000$ from the bank with the interest rate $5\%,$ with the principal and interest paid at maturity

Purchases a property as office space at $$115,000,$ in which $$20,000$ is the cost for the land and the remaining is the cost for the building. The estimated useful life of the building is $30$ years and the residual value is $$3,000$

Rents a warehouse and prepays the first month's rent $$1,000$ and security deposit $$2,000$

Purchases a delivery truck for $$33,000$ by cash, with $5$ years of estimated useful life and $$3,000$ residual value. The truck is estimated to be driven for $100,000$ miles.

Issues $500$ preferred stocks of par value $$3$ for $$15$ each; The annual dividend is $5\%.$

Purchases supplies by cash for $$2,000$

Invests $$10,000$ in short$-$term investment

Pays for the insurance premium $$3,000$ for six months, starting from the current month

Receives cash advance $$5,000$ from customer Alpha for an order to be filled later

Purchase $1$: $6,000$ units @ $$50$ from supplier A $($by cash$)$

Purchase $2$: $1,500$ units @ $$55$ from supplier B $(50\%$ paid immediately and the remaining is made on account$)$

Sells $3,000$ units priced @ $$75($sold to customer Alpha, the remaining amount is paid in full by cash immediately$)$

Purchase $3$: $2,400$ units @ $$60$ from supplier A $($made on account$)$

Lends $$6,000$ to a client by receiving a promissory note issued by the client with interest rate of $6\%$ and maturity of six months.

Sells $3,600$ units priced @ $$78($on account$)$ to customer Beta

Sells $1,500$ units priced @ $80($by cash$)$ to customer Gamma

$15$ units from the sale on Nov. $22$ are returned and customer Gamma gets full refund immediately

Repurchases $100$ shares at $$16$ each for the purpose of issuing bonus to employees at the end of the year

Announces cash dividends to common stocks, with $$0\mathrm{.}10$ per share $($Ignore the dividends to preferred stocks$),$ to be paid at the beginning of next year

Receives a bill from the bank for the month service charge $$100$

Selling expense accrued in the month is $$2,000$ and paid in full

Administrative expense for the month is $$1,500$ and paid in full

Pays the utility bill for current month by cash $$500$

Accrue salary expense $$8,000$ for the month, which will be paid at the beginning of the next month

Pays for the bank service charge by cash

Receives interest in cash from the short$-$term investment for the month $$180$

Supplies amount to $$800$ at the end of the month

Method to estimate bad debt expense:

Depreciation method for the property:

Depreciation method for the delivery truck:

Perpetual inventory with:

The income tax rate is $30\%*$There is also $8$ adjusting entries $-2$ interest, $2$ depreciation, rent, insurance, bad debt, income tax$*$