12/1/22 Dan buys 1,000 shares of common stock with a par value of $1 in his newly formed company for $14,000. 12/1/22 The company borrows $15,000 from the bank. The interest rate on the loan is 6%. 12/2/22 The company pays rent expense of $2,100. 12/2/22 FedEx delivers inventory ordered "on account." The box includes an invoice for $25,000 (500 toys at $50 each). The invoice (bill) is due in 30 days. The corporation uses a 100% markup which means the retail price of each toy will be $100. 12/2/22 The company paid cash for $4,800 of equipment. The equipment estimated useful life is 4 years. 12/31/22 The store sold 300 toys for $100 each to customers on account. The company sent an invoice for the sales price plus the 8% sales tax 12/31/22 Record the cost of goods sold for the 300 toys sold and remove the amount from the asset account inventory. 12/31/22 The company uses the allowance for bad debt method and it estimates that bad debts will be 3% of sales. Estimate based on sales revenue.

Answer rating: 100% (QA)

Lets break down the transactions 1 12122 Dan buys 1000 shares of common stock for 14000 Common s... View the full answer