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A.) Each transaction does require an entry. Dover company uses the gross method for purchases and sales, with a periodic inventory system.

B) Post the december transactions to the appropriate general ledger accounts. Balanances after the company closed its accounts on November 30 are indicated in each ledger account. Keep a running balance in the account.

C) Prepare the unadjusted trial balance in the first two columns and Input the totals at the very bottom.

Dec. 1 Paid $7500 to cover rent for December, January, February, and March

2 Paid an annual premium of $8,400 for business insurance

3 Received $16,500 from a customer to satisfy a balance from sales in September

5 Borrowed $20,000 from the bank, signing a 3 year, 5.8% promissory note.

7 Purchased $48,000 of merchandise from Buber Company with terms 2/10, n/30.

9 Purchased merchandise for $23,000 cash.

10 Returned damaged merchandise to Buber Company; received credit for $17,000.

10 Investors paid a total of $30,000 to purchase 20,000 shares of the company's $.80 par value common stock

10 Sold merchandise to Tom Smith on account, $28,000 with terms 2/10, net/30.

12 Received and paid telephone bill in the amount of $425 for December service.

13 Completed a $9,700 credit sale to Mike Jones with terms 1/10, n/30.

14 Paid the balance due to Buber Co.

15 Received $2,000 of merchandise returned by Mike Jones.

16 Purchased $18,000 of merchandise from Ottawa Company with terms 1/10, n/30.

17 A company that owed us $1,100 filed bankruptcy. The account was written off.

19 Bought $530 of supplies on account.

20 Sold merchandise on account to Ben James for $26,000, terms 2/15, n/30.

20 Received payment in full from Mike Jones.

24 Received a $385 bill for electricity used in December.

28 Received a check from Tom Smith for payment in full.

28 Recorded cash sales for December totaling $39,600

29 Paid half of the amount owed to Ottawa Company.

31 Dover Co declared and paid a $0.16 per share cash dividend.

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