1. Journalize and Post; Unadjusted Trial Balance The following selected transactions were completed during 2001 by...

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1. Journalize and Post; Unadjusted Trial Balance The following selected transactions were completed during 2001 by Rotan Corporation, a retailer of Scandinavian furniture. Sold 20,000 shares of its own common stock, par S1, for 512 per share and received cash in full & Borrowed $100.000 cash on a 9 percent, one-year note, interest payable at maturity on April 30, 2002. c. Purchased equipment for use in operating the business at a net cash cost of $164,000; paid in full. Purchased merchandise for resale at a cash cost of $140,000; paid cash. Assume a periodic inventory sys- tem; therefore, debit purchases. e. Purchased merchandise for resale on credit terms 2/10, n50. The merchandise will cost $9,800 if paid within 10 days after 10 days, the payment will be $10,000. The company always takes the discount, there- fore, such purchases are recorded net of discount. Sold merchandise for $180,000; collected $165,000 cash, and the balance is due in one month. & Paid $40,000 cash for operating expenses. A Paid three-fourths of the balance for the merchandise purchased in (e) within 10 days; the balance remains unpaid i Collected 50 percent of the balance due on the sale in (); the remaining balance is uncollected. Paid cash for an insurance premium, $600; the premium was for two years' coverage (debit prepaid insurance). & Purchased a tract of land for a future building for company operations, $63,000 cash L Paid damages to a customer who was injured on the company premises, $10,000 cash 1. Enter each of the above transactions in a general journal; use 11 for the first journal page number. Use the letter of the transaction in place of the date. 2. Set up appropriate T accounts and post the journal entries. Use posting reference numbers in your posting. Assign each T account an appropriate title, and number each account in balance-sheet order followed by the income statement accounts; start with Cash, No. 101. 3. Prepare an unadjusted trial balance. 1. Journalize and Post; Unadjusted Trial Balance The following selected transactions were completed during 2001 by Rotan Corporation, a retailer of Scandinavian furniture. Sold 20,000 shares of its own common stock, par S1, for 512 per share and received cash in full & Borrowed $100.000 cash on a 9 percent, one-year note, interest payable at maturity on April 30, 2002. c. Purchased equipment for use in operating the business at a net cash cost of $164,000; paid in full. Purchased merchandise for resale at a cash cost of $140,000; paid cash. Assume a periodic inventory sys- tem; therefore, debit purchases. e. Purchased merchandise for resale on credit terms 2/10, n50. The merchandise will cost $9,800 if paid within 10 days after 10 days, the payment will be $10,000. The company always takes the discount, there- fore, such purchases are recorded net of discount. Sold merchandise for $180,000; collected $165,000 cash, and the balance is due in one month. & Paid $40,000 cash for operating expenses. A Paid three-fourths of the balance for the merchandise purchased in (e) within 10 days; the balance remains unpaid i Collected 50 percent of the balance due on the sale in (); the remaining balance is uncollected. Paid cash for an insurance premium, $600; the premium was for two years' coverage (debit prepaid insurance). & Purchased a tract of land for a future building for company operations, $63,000 cash L Paid damages to a customer who was injured on the company premises, $10,000 cash 1. Enter each of the above transactions in a general journal; use 11 for the first journal page number. Use the letter of the transaction in place of the date. 2. Set up appropriate T accounts and post the journal entries. Use posting reference numbers in your posting. Assign each T account an appropriate title, and number each account in balance-sheet order followed by the income statement accounts; start with Cash, No. 101. 3. Prepare an unadjusted trial balance.

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ANSWER 1 General Journal Date Account Title and Explanation Ref Debit Credit 11 Cash 240000 11 Commo... View the full answer