You have been hired by Global Merchandising Company to journalize the following transactions for the company on the space provided on the Answer Sheets for 2017. Global Company buys and sells a product called Alpha. Company is using LIFO method and Perpetual Inventory System. Round up to two decimal points. You may abbreviate account names, but the must be clearly show what kind of account it is. For example, for a liability account such as Fed Inc. Tax is not sufficient. It should be Fed Inc. Tax Pay which denotes a liability account. Or Inc. Tax is not a complete name. Is it Inc. Tax Payable or Inc. Tax Expense.

Global started the period with 800 units of Alpha each had cost $20.

Q1. Global purchased 2,000 units of a merchandise at $22 each from Reynold Company on account, terms 2/10, n/30, FOB Shipping Point. Sales taxes was 6% which was not included in the price. In addition, Reynold Company charged Global Company $200 for shipping and handling.

Q2. Global returned 50 units and received credit.

Q3. Global paid Reynold Company in full within discount period.

Q4. Global sold 2,400 units of Alpha at $40 each plus 8% sales taxes to Polo Company. Sales taxes was not included in price. Terms were 1/10, n/30.

Q5. Polo Company returned 100 units and received credit.

Q6. Global collected from Polo Company in full within discount period.

Q7. Global received a past due bill for the amount of $8,000 for advertising in TV last year. Apparently, the initial bill was lost in mail and because of that Global had not recorded this expense last year. Global paid the $8,000 to the TV station. Last year company was subject to 30% income tax rate. Provide the necessary journal entry to record this payment.

Q8. In a fire sale, land and building obviously worth $100,000 and $300,000, respectively, was acquired at a cost of $300,000. Provide the journal entry.

Q9. Recorded $4,000 used up supplies.

Q10. Paid salaries of the month, $10,000. Applicable tax rates were as follows: FICA Taxes 7.65% Federal Income Taxes 18.00% State Income Taxes 6.00% Federal Unemployment Taxes 0.80% State Unemployment Taxes 5.40%