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What are the journal entries in the general journal for December 2020? Part I: December Journal...
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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| Journal Entries | |||
| Date | General Journal | Debit | Credit |
| December 1,2020 | Accounts Receivable | 78,400 | - |
| Sales | - | 78,400 | |
| (Entry to record sales using net method) | |||
| December 1,2020 | Cost of goods sold | 53,500 | - |
| Inventory | - | 53,500 | |
| (Entry to record cost of goods sold) | |||
| December 2,2020 | Land | 6,00,000 | - |
| Cash | - | 1,00,000 | |
| Note Payable 4% 90 Day | - | 5,00,000 | |
| (Entry to record purchase of land) | |||
| December 3,2020 | Common Stock | 63,000 | - |
| Cash | - | 63,000 | |
| (Entry to record buy back of 3000 shares) | |||
| December 3,2020 | Cash | 2,10,000 | - |
| Accounts Receivable | - | 2,10,000 | |
| (Entry to record collection of $ 210,000) | |||
| December 4,2020 | Equipment | 50,000 | - |
| Cash | - | 50,000 | |
| (Entry to record purchase of equipment) | |||
| December 5,2020 | Cash | 5,000 | - |
| Common Stock | - | 5,000 | |
| (Entry to record issue of 5000 shares at par value of 1$) | |||
| December 6,2020 | Accounts Payable | 42,000 | - |
| Cash | - | 42,000 | |
| (Entry to record payment made to supplier) | |||
| December 7,2020 | Inventory | 91,180 | - |
| Accounts Payable | - | 91,180 | |
| (Entry to record purchase of inventory using net method) | |||
| December 8,2020 | Cash | 78,400 | - |
| Accounts Receivable | - | 78,400 | |
| (Entry to record receipt of amount for sales made on December 1) | |||
| December 10,2020 | Cash | 2,50,000 | - |
| Common Stock | - | 2,50,000 | |
| (Entry to record issue of 10000 shares of common stock) | |||
| December 12,2020 | Note Payable 4% 90 Day | 5,00,000 | - |
| Interest | 3,500 | - | |
| Cash | - | 5,03,500 | |
| (Entry to record payment of short term note) | |||
| December 16,2020 | Accounts Payable | 91,180 | - |
| Cash | - | 91,180 | |
| (Entry to record payment of inventory purchased on December 7) | |||
| December 17,2020 | Inventory | 1,20,584 | - |
| Accounts Payable | - | 1,20,584 | |
| (Entry to record purchase of inventory using net method) | |||
| December 19,2020 | Accounts Receivable | 1,50,000 | - |
| Sales | - | 1,50,000 | |
| (Entry to record sales) | |||
| December 19,2020 | Cost of goods sold | 95,000 | - |
| Inventory | - | 95,000 | |
| (Entry to record cost of goods sold) | |||
| December 20,2020 | Accounts Receivable | 1,32,300 | - |
| Sales | - | 1,32,300 | |
| (Entry to record sales) | |||
| December 20,2020 | Cost of goods sold |
 ekkarill92 answered 1 year agoRelated SolutionsPart 1 – General Journal – Post the following journal entries to the general journal. ...Part 1 – General Journal – Post the following
journal entries to the general journal.
Trans.
Date
Description
1
May 1
Sell 50,000 shares of common stock for $50,000 to obtain the
funds necessary to start your business.
2
May 1
Borrow $20,000 from the local bank and sign a note promising to
repay the full amount of the debt in 5 years.
3
May 1
Issue 1,500 shares of $2 par value preferred stock at
$30/share.
4
May...
Part 2 – General Journal (LO3-2) – Post the following journal entries to the general journal....Part 2 – General Journal (LO3-2) – Post the following journal
entries to the general journal. ?
Trans:
May 1 Sell 100,000 shares of common stock for $100,000 to obtain
the funds necessary to start your business. ?
May 1 Borrow $50,000 from the bank and sign a note promising to
repay the full amount of the debt in 5 years. ?
May 1 Issue 1,000 shares of $2 par value preferred stock at
$30/share. ?
May 1 ? Purchase...
. Prepare journal entries to record the December transactions in the General Journal Tab in the...
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Prepare journal entries to
record the December transactions in the General Journal Tab in the
excel template file "Accounting Cycle Excel Template.xlsx". Use the
following accounts as appropriate: Cash, Accounts Receivable,
Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation,
Accounts Payable, Wages Payable, Common Stock, Retained Earnings,
Dividends, Service Revenue, Depreciation Expense, Wages Expense,
Supplies Expense, Rent Expense, and Insurance Expense.
1-Dec
Began business by depositing $9500 in a bank
account in the name of the company in exchange for
950...
#1. Prepare journal entries to record the December transactions in the General Journal Tab in the...#1. Prepare journal entries to record the December transactions
in the General Journal Tab in the excel template file "Accounting
Cycle Excel Template.xlsx". Use the following accounts as
appropriate: Cash, Accounts Receivable, Supplies, Prepaid
Insurance, Equipment, Accumulated Depreciation, Accounts Payable,
Wages Payable, Common Stock, Retained Earnings, Dividends, Service
Revenue, Depreciation Expense, Wages Expense, Supplies Expense,
Rent Expense, and Insurance Expense. 1-Dec Began business by
depositing $10500 in a bank account in the name of the company in
exchange for 1050...
Prepare journal entries to record the December transactions in the General Journal Tab in the excel...Prepare journal entries to record the December transactions in
the General Journal Tab in the excel template file "Accounting
Cycle Excel Template.xlsx". Use the following accounts as
appropriate: Cash, Accounts Receivable, Supplies, Prepaid
Insurance, Equipment, Accumulated Depreciation, Accounts Payable,
Wages Payable, Common Stock, Retained Earnings, Dividends, Service
Revenue, Depreciation Expense, Wages Expense, Supplies Expense,
Rent Expense, and Insurance Expense. 1-Dec Began business by
depositing $6500 in a bank account in the name of the company in
exchange for 650 shares...
#1. Prepare journal entries to record the December transactions in the General Journal Tab in the...#1. Prepare journal entries to record the December transactions
in the General Journal Tab in the excel template file "Accounting
Cycle Excel Template.xlsx". Use the following accounts as
appropriate: Cash, Accounts Receivable, Supplies, Prepaid
Insurance, Equipment, Accumulated Depreciation, Accounts Payable,
Wages Payable, Common Stock, Retained Earnings, Dividends, Service
Revenue, Depreciation Expense, Wages Expense, Supplies Expense,
Rent Expense, and Insurance Expense. 1-Dec Began business by
depositing $6500 in a bank account in the name of the company in
exchange for 650...
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The budget prepared for the fiscal year included estimated
revenues of $3,774,000, appropriations of $3,695,000 and estimated
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Prepare General Journal Entries for the following transactions. Then post the journal entries to the General...
Prepare General Journal Entries for the following
transactions. Then post the journal entries to the General Ledger
provided and then prepare an Unadjusted Trial Balance. March
1Dunlop invested $30,000 cash and buildings worth $150,000 in the
company March 2The company rented equipment by paying $2,000 cash
for the first month’s (March) rent. March 5The company purchased
$2,400 of office supplies for cash. March 10The company paid
$7,200 cash for the premium on a 12-month insurance policy.
Coverage begins on March...
Step 1: Prepare journal entries to record the December transactions in the General Journal Tab...
Step 1: Prepare journal entries to record
the December transactions in the General Journal Tab in the excel
template file "Accounting Cycle Excel Template.xlsx". Use the
following accounts as appropriate:
1-Dec Issue common
stock in exchange for cash of $6,500.
1-Dec Paid the premium
in advance on a one-year insurance policy, $600.
1-Dec Purchased
Equipment for $4,200 cash. ...
Required: #1. Prepare journal entries to record the December transactions in the General Journal Tab in...
Required:
#1.
Prepare journal entries to record the December
transactions in the General Journal Tab in the excel template file
"Accounting Cycle Excel Template.xlsx". Use the following accounts
as appropriate: Cash, Accounts Receivable, Supplies, Prepaid
Insurance, Equipment, Accumulated Depreciation, Accounts Payable,
Wages Payable, Common Stock, Retained Earnings, Dividends, Service
Revenue, Depreciation Expense, Wages Expense, Supplies Expense,
Rent Expense, and Insurance Expense.
1-Dec
Began business by depositing $8500 in a bank
account in the name of the company in exchange for...
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