RECORD THE FOLLOWING TRANSACTION ON THE TRANSACTION DATE AND ON DEC. 31ST 1. On March 31st, the

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RECORD THE FOLLOWING TRANSACTION ON THE TRANSACTION DATE AND ON DEC. 31ST

1. On March 31st, the company purchased a machine costing $4,400,000. In return of the machine, the company paid $500,000 cash and issued a 10% promissory note for the remainder ofthe amount.
2. The annual depreciation of the machine based on a 10 year useful life was 440,000.
3. Received $500,000 in advance on September 30th, for services to be performed over the next 12 months.
4. Paid $400,000 in advance for leasing a new building on April 1st. The building was leased for 2 years starting from April 1st.
5. Received $360,000 in advance on June 1st for services to be provided over the next 18 months.
6. Paid $300,000 in advance on April 1st for leasing a building for the next 15 months.
7. Purchased goods for 200,000 on account.
8. Sold all the above mentioned goods on account for $460,000.
9. Issued a 3 year Notes Payable worth $1,000,000 on Sep. 1st. The note carried an interest rate of 12%
10. Gave an advance of $250,000 to an employee on March 1st, at an interest rate of 10%.
11. Sold goods worth $360,000 for cash. The cost of those goods to us was $200,000. We also collected accounts receivables worth $300,000.
12. Collected Accounts receivables for $100,000. Paid of accounts payables worth $180,000.
13. The company issued stock worth $5000,000 at par value. The company paid dividends worth $1000,000
14. The company declared dividends worth $500,000.
15. The company issued 15,000 common shares. The shares had a face value of $1 and they were issued in the market for $24.
16. The company recorded accounts receivables worth $500,000. Based on past estimates the company expects that 2% of the accounts receivables will be uncollectible (bad debts). The company wrote off $8,000 worth of accounts receivable as bad debts during the year.
17. Purchased a machine for $200,000 on January 1st.
18. The annual depreciation on the machine was $40,000.