Instructions:

Based on the partial data below prepare the required journal entries in good form for 2020. Provide all calculations. These are NOT independent entries.

1/1/20 Select Balances

Accounts Receivable $190,000

Allowance for Doubtful Accounts has a credit balance of $18,000

Common Stock, 5 par value (100,000 authorized, 20,000 shares issued) 100,000

Paid in Excess of Par, Common Stock 50,000

Treasury Stock (500 shares) 20,000

January 1st: Purchased a Dune Buggy for $20,000 to increase efficiency in caring for the property. It was determined the asset will be driven approximately #20,000 miles, $100 residual value, and a 5-year life.

January 15th: Issued 1,000 shares of common stock for $50 per share.

January 31st: Employees are paid a monthly salary of $9,000. Federal withholding is $1,300, social security tax is 6%, Medicare tax of 1.5%, state unemployment tax of 5.4%, and federal unemployment tax of 0.8%.

March 2nd: Accepts a 90-day, 8% note for $28,000, from a customer (Darts) unable to pay their account.

April 1st: Purchased a dog-kennel for $1,000 to be used to protect the property. It was determined the kennel will be used evenly for 10 years and has a $200 scrap value.

June 2nd: Darts paid the note in full.

June 4th: The board of directors declared a 5% stock dividend for common stockholders when the market price is $15 per share.

August 1st: Purchased a $2,500 electronic system. Maddie expects it to be most useful the 1st couple of years but will use for 5 years. The residual value is $500 due to the technical components scrap value.

August 4th: Paid the dividend declared on June 4th.

August 15th: A bankruptcy notice was received for a customer: Smokie Inc. Smokie has an $8,000 balance.

October 31st: The board of directors declared a 1.00 dollar per share dividend on Common Stock.

November 1st: Maddie Inc. borrowed $30,000 from Final Bank. The 120-day note states an interest rate of 18%.

December 15th: Paid the dividend declared on October 31st.

December 20th: Sold #500 shares of reacquired stock for $80per share.

Year-end data

An analysis of receivables estimates uncollectible receivables as $30,000.

The dune buggy was driven 3,500 miles.