Question
What are the journal entries in the general journal for December 2020? Part I: December Journal Entries Record the following entries in general journal form
What are the journal entries in the general journal for December 2020?
Part I: December Journal Entries Record the following entries in general journal form for December 2020: December 1: Recorded sales on account of $80,000, 2/15, net 30. Cost of inventory was $53,500. W. Forest Mills, Inc. using the net method for accounting for sales. December 2: Purchased Land for a future building site for $600,000, paying $100,000 down and signed a 4%, 90-day note for the balance. December 3: Bought back 3000 shares of stock for $21 per share. December 3: Collected $210,000 on accounts. December 4: Purchased 50,000 worth of equipment, 5 year life, $4,000 salvage value, for cash. Equipment will be depreciated using the straight-line method of depreciation. December 5: Issued 5000 shares of restricted stock to its CFO. The stock has a fair value of $125,000. The service period related to this restricted stock is 5 years. Vesting occurs if the CFO stays with the company for 5 years. The par value of the stock is $1. December 6: Paid invoice of $42,000 to supplier. The invoice related to inventory purchase which had been previously recorded. December 7: Purchased inventory of $94,000 on account with terms 3/10 net 60. Eastown uses the net method for its purchases. December 8: Received payment related to sale on December 1. December 10: Issued 10,000 shares of common stock at $25.00 per share December 12: Paid off short-term note from 12/1 trial balance plus interest of $3,500. December 16: Paid invoice from 12/7. December 17: Purchased $123,045 inventory on account with terms 2/15, net 30. Eastown uses the net method for its purchases. December 19: Recorded cash sales of $150,000, cost of inventory was $95,000. December 20: Recorded sales on account of $135,000, terms 2/10, net 30, cost of merchandise inventory was $75,000. December 24: Sold 1,500 shares of Treasury Stock for $24 per share. December 26: Wrote off $5,575 in bad debt. December 31: Signed a 5 year lease for equipment, fair value of $200,000. Equipment transfers to Eastown at end of lease. Lease payments of 47,500 commence with signing of lease.
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