ABCDEFGHIJKLMNOPQRSTUVWXYZ
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Grade:
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Daily Transactions
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1Issued 500 shares of common stock with a par value of $1 for $4 per share
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Purchased new equipment for $3,000 by issuing an 18-month note payable with interest of 5.33%
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3Paid taxes of $1,221 from prior year
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4Purchased inventory for $1,835 on credit with terms of 2/10, n/30
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5Paid shipping for inventory purchased of $50
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6Determined an account receivable of $150 is uncollectible
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Sold merchandise costing $21,300 to customers for $42,162 on credit with terms of 1/20, n/60
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8Returned $100 worth of inventory to supplier
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9Paid $250 to ship merchandise to customers
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Issued 5 year bonds with a face value of $10,000 and an interest rate of 3% paid semiannually
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for $11,000 when market rate is 2%
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11Paid for inventory purchase (in time for discount)
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Offered an allowance of $1,000 to customers to compensate for defective merchandise
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13Paid $900 for 4 months worth of insurance
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14Made a payment of $1,000 on long term debt
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Received payments from customers for all merchandise sold during the quarter (in time for discount)
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16Repurchased 100 shares of common stock for $2.50 each
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Customer converted an account receivable for $1,000 to a 90-day note receivable with interest of 3%
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18Made first bond interest payment
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19Sold 50 shares of Treasury stock for $3 each
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20Declared a $1,600 dividend to be paid in 1 month
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21Incurred income tax expense of $1,395 for the current year. This will be paid next year.
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22Paid dividend
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Several customers paid off their accounts receivable balances from prior quarters for a
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total of $14,350 (they did not qualify for a discount)
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Adjusting Entries
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24The company estimates that 2% of their net sales will be uncollectible
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253 months worth of interest has accrued on the note payable
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26As of December 31, 2018, the company has used half of the prepaid insurance
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27Depreciation expense is estimated at $3,200
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Closing Entries
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28Close revenue accounts
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29Close expense accounts (including sales returns and sales discounts)
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30Close dividend account
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