Please fill out a general journal for the transactions.Customers are charged $87 per hour...

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Accounting

Please fill out a general journal for the transactions.
Customers are charged $87 per hour for services
Customers are charged $75 for each unit of retail productpurchased
Inventory is purchased by the company for $36 per unit
Trans.
Date
Description
1
Dec. 1
Borrow $115,000 from the local bank and signed a six-yearinstallment note with payments of $1,905 at the end of each month.The annual interest rate is 6%. Current portion of Note at year endafter December payment = 16,500
2
Dec. 1
Purchased a building for $56,000. Paid $2,000 in attorney fees,$4,000 in remodeling costs to get the building ready for use. Thebuilding has a 25-year useful life with residual value of$2,000.
3
Dec. 1
Sold $4,350 worth of gift cards in opening celebration forservices to be provided in December. The gift cards expire at theend of the month.
4
Dec. 1
Sell 16,000 shares of no-par value common stock for $6 per shareto obtain the funds necessary to start your business.
5
Dec. 1
Purchase 400 units of inventory on account with terms 3/10 net30.
6
Dec. 1
Purchase a vehicle necessary for business operations for $21,000cash. The vehicle has a five year life with a residual value of$3,000.
7
Dec. 1
Pay $6,000 for one year of insurance in advance.
8
Dec. 3
Sell 200 units of inventory to a customer who signs a 6-monthpromissory note at 6% with interest and principal due at maturity.perpetual method = 2 entries
9
Dec. 3
Purchase Supplies on account, $3,200.
10
Dec. 6
Provide 40 hours of services to customers who pay with giftcards (calculate using your hourly service rate) no termsspecified.
11
Dec. 8
Company pays invoice for inventory purchased on December1^st within discount terms.
12
Dec. 10
Purchase an additional 240 units of inventory for cash.
13
Dec. 12
Sell 100 units of inventory to a customer on account with asales discount of 2/10, n/30. (Perpetual method= 2 entries)
14
Dec. 20
The customer who purchased product on December 12^thpays the amount due (within discount period).
15
Dec. 23
Sell 180 units of inventory on account. (Perpetual method = 2entries)
16
Dec. 31
Record the of $1,905 installment payment on the $115,000installment note borrowed on December 1^st. The annualinterest rate is 6%.
17
Dec. 31
Pay employee salaries, $4,000.
18
Dec. 31
Pay cash dividends to shareholders of $0.10 per share.
19
Dec. 31
Vehicle did not meet expectations sold to another company for$23,000. (Record depreciation at date of sale and then recordsale).

Answer & Explanation Solved by verified expert

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Journal entries Date Account title and explanation Debit Credit 1 Dec1 Cash 115000 Notes payable 115000 To record borrowing in exchange of notes 2 Dec1 Buildings 62000 Cash 62000 To record purchase of buildings 3 Dec1 Cash 4350 Unearned revenue 4350 To record sale of gift cards 4 Dec1 Cash 96000 Common stock 16000 x 6 96000 To record issuance of common stock 5 Dec1 Inventory 14400 Accounts See Answer

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Transcribed Image Text

In: AccountingPlease fill out a general journal for the transactions.Customers are charged $87 per hour for...Please fill out a general journal for the transactions.Customers are charged $87 per hour for servicesCustomers are charged $75 for each unit of retail productpurchasedInventory is purchased by the company for $36 per unitTrans.DateDescription1Dec. 1Borrow $115,000 from the local bank and signed a six-yearinstallment note with payments of $1,905 at the end of each month.The annual interest rate is 6%. Current portion of Note at year endafter December payment = 16,5002Dec. 1Purchased a building for $56,000. Paid $2,000 in attorney fees,$4,000 in remodeling costs to get the building ready for use. Thebuilding has a 25-year useful life with residual value of$2,000.3Dec. 1Sold $4,350 worth of gift cards in opening celebration forservices to be provided in December. The gift cards expire at theend of the month.4Dec. 1Sell 16,000 shares of no-par value common stock for $6 per shareto obtain the funds necessary to start your business.5Dec. 1Purchase 400 units of inventory on account with terms 3/10 net30.6Dec. 1Purchase a vehicle necessary for business operations for $21,000cash. The vehicle has a five year life with a residual value of$3,000.7Dec. 1Pay $6,000 for one year of insurance in advance.8Dec. 3Sell 200 units of inventory to a customer who signs a 6-monthpromissory note at 6% with interest and principal due at maturity.perpetual method = 2 entries9Dec. 3Purchase Supplies on account, $3,200.10Dec. 6Provide 40 hours of services to customers who pay with giftcards (calculate using your hourly service rate) no termsspecified.11Dec. 8Company pays invoice for inventory purchased on December1st within discount terms.12Dec. 10Purchase an additional 240 units of inventory for cash.13Dec. 12Sell 100 units of inventory to a customer on account with asales discount of 2/10, n/30. (Perpetual method= 2 entries)14Dec. 20The customer who purchased product on December 12thpays the amount due (within discount period).15Dec. 23Sell 180 units of inventory on account. (Perpetual method = 2entries)16Dec. 31Record the of $1,905 installment payment on the $115,000installment note borrowed on December 1st. The annualinterest rate is 6%.17Dec. 31Pay employee salaries, $4,000.18Dec. 31Pay cash dividends to shareholders of $0.10 per share.19Dec. 31Vehicle did not meet expectations sold to another company for$23,000. (Record depreciation at date of sale and then recordsale).

Trans.	Date	Description
1	Dec. 1	Borrow $115,000 from the local bank and signed a six-yearinstallment note with payments of $1,905 at the end of each month.The annual interest rate is 6%. Current portion of Note at year endafter December payment = 16,500
2	Dec. 1	Purchased a building for $56,000. Paid $2,000 in attorney fees,$4,000 in remodeling costs to get the building ready for use. Thebuilding has a 25-year useful life with residual value of$2,000.
3	Dec. 1	Sold $4,350 worth of gift cards in opening celebration forservices to be provided in December. The gift cards expire at theend of the month.
4	Dec. 1	Sell 16,000 shares of no-par value common stock for $6 per shareto obtain the funds necessary to start your business.
5	Dec. 1	Purchase 400 units of inventory on account with terms 3/10 net30.
6	Dec. 1	Purchase a vehicle necessary for business operations for $21,000cash. The vehicle has a five year life with a residual value of$3,000.
7	Dec. 1	Pay $6,000 for one year of insurance in advance.
8	Dec. 3	Sell 200 units of inventory to a customer who signs a 6-monthpromissory note at 6% with interest and principal due at maturity.perpetual method = 2 entries
9	Dec. 3	Purchase Supplies on account, $3,200.
10	Dec. 6	Provide 40 hours of services to customers who pay with giftcards (calculate using your hourly service rate) no termsspecified.
11	Dec. 8	Company pays invoice for inventory purchased on December1^st within discount terms.
12	Dec. 10	Purchase an additional 240 units of inventory for cash.
13	Dec. 12	Sell 100 units of inventory to a customer on account with asales discount of 2/10, n/30. (Perpetual method= 2 entries)
14	Dec. 20	The customer who purchased product on December 12^thpays the amount due (within discount period).
15	Dec. 23	Sell 180 units of inventory on account. (Perpetual method = 2entries)
16	Dec. 31	Record the of $1,905 installment payment on the $115,000installment note borrowed on December 1^st. The annualinterest rate is 6%.
17	Dec. 31	Pay employee salaries, $4,000.
18	Dec. 31	Pay cash dividends to shareholders of $0.10 per share.
19	Dec. 31	Vehicle did not meet expectations sold to another company for$23,000. (Record depreciation at date of sale and then recordsale).