Intermediate Accounting I

Chapter $2$: Reviewing the accounting cycle Homework

The following transactions occurred during the month of December $2023$ for International Appliances Corporation. The company owns and operates a retail appliance store.

$1$ International Appliances Inc. opened with the following stockholders:

Name Investment Stock Type

Peter Jones $ $75,000$ Preferred Stock

Helen Chen $ $50,000$ Common Stock

Charles Garcia $ $100,00050\%$ Preferred $50\%$ Common

Note: Common Stock Par Value $ $1\mathrm{.}00$

Preferred Stock Par Value: $ $5\mathrm{.}00$

$1.$ Original Investment

$1.$ Purchased furniture and fixtures at a cost of $$60,000.$ $$25,000$ was paid in cash and signed a $15\%$ note payable with terms n$/60$ for the balance owed.

$2.$ Issued $50,000$ shares of common stock and sold them at $ $10$ per share.

$2.$ Purchased Office Supplies on account $ $3,000.$

$3.$ Purchased inventory on account at a cost of $$500,000.$ The company uses the perpetual inventory system.

$3.$ Sold merchandise to Mr$.$ Michael Smith for $ $15,000$ on account with terms: net $30.$ The cost of the

merchandise was $ $10,000.$

$4.$ Credit sales totaled $$700,000.$ The cost of goods sold was $$350,000.$

$5.$ Paid $$2,000$ on Insurance for the store building for the month of December.

$6.$ Paid $$40,000$ to a real estate company for the rent for a one$-$year period beginning on Dec. $1.$

$7.$ Issued $10,000$ shares of Preferred Stock and sold them at $ $15$ per share.

$7.$ Paid $$100,000$ on account for the merchandise purchased in Dec. $3.$

$8.$ Collected $$220,000$ from customers on account.

$9.$ The company declared cash dividends as follows:$$ Common stock dividend per share$=$ $ $0\mathrm{.}15$ Preferred stock dividend per share$=$ $ $0\mathrm{.}65$

the journal entries and trial balance help me please