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Transactions to journalize: sales revenue. The cost of the goods sold is $20,000. Dec.1-Delivered the order for $50,000 to a client who had paid the
Transactions to journalize: sales revenue. The cost of the goods sold is $20,000. Dec.1-Delivered the order for $50,000 to a client who had paid the company for the goods in advance and recognized the Dec.1-Purchased 12%, 10-year Phonix Inc. bonds for $100,000. Interest is payable annually. Merit Company intends to the bonds to maturity. Dec.5-Acquired 2,000 shares of Dart Inc. common stock and paid $20 per share. Dec.31-Sold the machinery for $39,000 cash. (Hint: Record annual depreciation up to the date of disposal.) Dec.28-Received dividend on stock investments (Dart Inc.). Dividend per share is $0.50. Dec.31- Made the adjustments for the following: a. Adjusted the allowance for doubtful accounts to $9,000. b. Office rent (which was prepaid) for one month is $5,000. C. 1-month interest calculated and accrued for debt investments, which was acquired on Dec.1. d. Depreciated the plant assets for the year 2021. (The company uses straight-line method.) Salaries and wages for December calculated $10,000. (The amount will be paid next month.) e
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