Create a Journal entry 11/1/18 Dixie Iron Works, Inc. (the latest and greatest place to pump iron from...

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Create a Journal entry
11/1/18 Dixie Iron Works, Inc. (the latest and greatestplace to pump iron from Exam 1) is opening a new location andcreating a new entity.
The new location/entity will be called Dixie IronWorks II, LLC, and will primarily sell their special, patentednutritional supplement.
This new business model will provide a largercustomer base, as the supplement can be sold to other retailers aswell as individuals.
11/1/18 Shareholders invest $100,000 in exchange for commonstock in Dixie Iron Works II, LLC.
11/1/18 Pay $12,000 to register the patent on theirspecially forumlated nutritional supplement.
Patents are amortized over 20 years.
11/1/18 Rent office space on a monthlycontract. Pay $2,500 cash for November's rent.
11/1/18 Purchase a company vehicle for $15,000cash. The vehicle will be used by Dixie Iron Works II,LLC
for 2 years. At the end of the two years it isestimated that the vehicle will be worth $6,000.
The vehicle will be depreciated using thestraight-line depreciation method.
11/5/18 Purchase 2,000 units of Dixie Iron Works II'sspecial created supplement from their supplier.
The cost per unit is $21.
The supplements are purchased on account, terms5/10n30.
The supplements are purchased FOB Shipping point,and ship on 11/5/18.
11/10/18 The supplements arrive at Dixie Iron Works II'slocation.
11/11/18 Dixie Iron Works II pays for the supplements infull.
11/12/18 Dixie Iron Works II pays $2,100 for shipping thesupplement order.
11/15/18 1,750 units of supplements are sold to The SummitAthletic Club for $36 each.
The supplements are paid for at the time ofsale.
11/15/18 Fearing a shortage of inventory, Dixie Iron WorksII purchases an additional 1,000 supplements from theirsupplier.
The cost per unit is $19, because they arepurchased using cash, (same day shipping).
11/16/18 50 units of supplements are returned to Dixie IronWorks II.
The product is undamaged and can be resold.
11/17/18 10 units of supplements are sold on account to apersonal trainer for $40 each.
Dixie Iron Works II uses the LIFO inventory costmethod.
11/20/18 1,100 units of supplements are sold to a localcross-fit gym for $35 each.
The supplements are paid for at the time of thesale.
Dixie Iron Works II uses the LIFO inventory costmethod.
11/30/18 A physical inventory is conducted and only 185units of inventory are on hand.
11/30/18 Someone claims to have became ill from one of DixieIron Works II's supplements.
Brand image is hurt. The supplement's currentmarket price drops to $15 per unit.
Perform a LCM adjustment.
11/30/18 Dixie Iron Works II, LLC learns that the personaltrainer who purchased 10 supplements won't be able
to pay for his account in full.
One half of his account is written off.
11/30/18 Record deprecation for the vehicle and amortizationon the patent.
11/30/18 Dixie Iron Works II, LLC determines that 5% of allsales on account will be uncollectible.
(Hint: ending Allowance account balance should be5% of ending A/R balance).

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Date Transaction JE DrCr Amount Dr Amount Cr 11012018 Shareholders investment Bank Account Dr 100000 Equity Share Capital Ac Cr 100000 Being amount invested by Shareholders 11012018 Registration of Patent Patent Ac Dr 12000 Bank Account Cr 12000 Amount paid toward Registration of Patent 11012018 Rent paid Rent Account Dr 2500 Bank Account Cr 2500 Being Rent paid for the month of November 11012018 Purchase of Vehicle Fixed Asset Ac Dr 15000 Bank Account Cr 15000 Being Vehicle purchased 11012018 See Answer

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Transcribed Image Text

Create a Journal entry11/1/18Dixie Iron Works, Inc. (the latest and greatestplace to pump iron from Exam 1) is opening a new location andcreating a new entity.The new location/entity will be called Dixie IronWorks II, LLC, and will primarily sell their special, patentednutritional supplement.This new business model will provide a largercustomer base, as the supplement can be sold to other retailers aswell as individuals.11/1/18Shareholders invest $100,000 in exchange for commonstock in Dixie Iron Works II, LLC.11/1/18Pay $12,000 to register the patent on theirspecially forumlated nutritional supplement.Patents are amortized over 20 years.11/1/18Rent office space on a monthlycontract. Pay $2,500 cash for November's rent.11/1/18Purchase a company vehicle for $15,000cash. The vehicle will be used by Dixie Iron Works II,LLCfor 2 years. At the end of the two years it isestimated that the vehicle will be worth $6,000.The vehicle will be depreciated using thestraight-line depreciation method.11/5/18Purchase 2,000 units of Dixie Iron Works II'sspecial created supplement from their supplier.The cost per unit is $21.The supplements are purchased on account, terms5/10n30.The supplements are purchased FOB Shipping point,and ship on 11/5/18.11/10/18The supplements arrive at Dixie Iron Works II'slocation.11/11/18Dixie Iron Works II pays for the supplements infull.11/12/18Dixie Iron Works II pays $2,100 for shipping thesupplement order.11/15/181,750 units of supplements are sold to The SummitAthletic Club for $36 each.The supplements are paid for at the time ofsale.11/15/18Fearing a shortage of inventory, Dixie Iron WorksII purchases an additional 1,000 supplements from theirsupplier.The cost per unit is $19, because they arepurchased using cash, (same day shipping).11/16/1850 units of supplements are returned to Dixie IronWorks II.The product is undamaged and can be resold.11/17/1810 units of supplements are sold on account to apersonal trainer for $40 each.Dixie Iron Works II uses the LIFO inventory costmethod.11/20/181,100 units of supplements are sold to a localcross-fit gym for $35 each.The supplements are paid for at the time of thesale.Dixie Iron Works II uses the LIFO inventory costmethod.11/30/18A physical inventory is conducted and only 185units of inventory are on hand.11/30/18Someone claims to have became ill from one of DixieIron Works II's supplements.Brand image is hurt. The supplement's currentmarket price drops to $15 per unit.Perform a LCM adjustment.11/30/18Dixie Iron Works II, LLC learns that the personaltrainer who purchased 10 supplements won't be ableto pay for his account in full.One half of his account is written off.11/30/18Record deprecation for the vehicle and amortizationon the patent.11/30/18Dixie Iron Works II, LLC determines that 5% of allsales on account will be uncollectible.(Hint: ending Allowance account balance should be5% of ending A/R balance).

11/1/18	Dixie Iron Works, Inc. (the latest and greatestplace to pump iron from Exam 1) is opening a new location andcreating a new entity.
	The new location/entity will be called Dixie IronWorks II, LLC, and will primarily sell their special, patentednutritional supplement.
	This new business model will provide a largercustomer base, as the supplement can be sold to other retailers aswell as individuals.

11/1/18	Shareholders invest $100,000 in exchange for commonstock in Dixie Iron Works II, LLC.

11/1/18	Pay $12,000 to register the patent on theirspecially forumlated nutritional supplement.
	Patents are amortized over 20 years.

11/1/18	Rent office space on a monthlycontract. Pay $2,500 cash for November's rent.

11/1/18	Purchase a company vehicle for $15,000cash. The vehicle will be used by Dixie Iron Works II,LLC
	for 2 years. At the end of the two years it isestimated that the vehicle will be worth $6,000.
	The vehicle will be depreciated using thestraight-line depreciation method.

11/5/18	Purchase 2,000 units of Dixie Iron Works II'sspecial created supplement from their supplier.
	The cost per unit is $21.
	The supplements are purchased on account, terms5/10n30.
	The supplements are purchased FOB Shipping point,and ship on 11/5/18.

11/10/18	The supplements arrive at Dixie Iron Works II'slocation.

11/11/18	Dixie Iron Works II pays for the supplements infull.

11/12/18	Dixie Iron Works II pays $2,100 for shipping thesupplement order.

11/15/18	1,750 units of supplements are sold to The SummitAthletic Club for $36 each.
	The supplements are paid for at the time ofsale.

11/15/18	Fearing a shortage of inventory, Dixie Iron WorksII purchases an additional 1,000 supplements from theirsupplier.
	The cost per unit is $19, because they arepurchased using cash, (same day shipping).

11/16/18	50 units of supplements are returned to Dixie IronWorks II.
	The product is undamaged and can be resold.

11/17/18	10 units of supplements are sold on account to apersonal trainer for $40 each.
	Dixie Iron Works II uses the LIFO inventory costmethod.

11/20/18	1,100 units of supplements are sold to a localcross-fit gym for $35 each.
	The supplements are paid for at the time of thesale.
	Dixie Iron Works II uses the LIFO inventory costmethod.

11/30/18	A physical inventory is conducted and only 185units of inventory are on hand.

11/30/18	Someone claims to have became ill from one of DixieIron Works II's supplements.
	Brand image is hurt. The supplement's currentmarket price drops to $15 per unit.
	Perform a LCM adjustment.

11/30/18	Dixie Iron Works II, LLC learns that the personaltrainer who purchased 10 supplements won't be able
	to pay for his account in full.
	One half of his account is written off.

11/30/18	Record deprecation for the vehicle and amortizationon the patent.

11/30/18	Dixie Iron Works II, LLC determines that 5% of allsales on account will be uncollectible.
	(Hint: ending Allowance account balance should be5% of ending A/R balance).