Journal entries for the following;

November 1 1 The company issues 25,000 ordinary shares at a nominal value of $1 per share at $10 per share.
November 2 1 Purchases a six-month short-term loan of $50,000 from the bank at 6% interest on principal and interest paid at maturity
November 3 November 1 Purchases a property for $115,000 as office space, $20,000 of which is the cost of the land and the remainder is the cost of the building. The building has an estimated useful life of 30 years and a residual value of $5,000.
November 4 1 Rents a warehouse and pays the first month's rent of $1,000 and a deposit of $2,000 upfront
5 November 1 Purchases a delivery truck for $33,000 in cash with an estimated useful life of 5 years and a residual value of $3,000. It is estimated that the truck has been used for 100,000 miles.
November 6 2 Issues 500 preferred shares with a nominal value of $3 at $15 each; Annual dividend is 5%.
November 7 2 Purchases material for $2,000 in cash
8 November 2 Invests $10,000 in short-term investment
November 9 2 Pays $3,000 in premium for six months starting current month November
10 3 Recharges Alpha customer $5,000 for an order to be filled later received cash advance
11 Nov 3 1 Purchase: 2,000 units from supplier A @ $50 (in cash)
Nov 12 8 2 Purchase: 500 units from supplier B at $55 (50% payable immediately and balance credited)
13 November. Sold for 12 1,000 units @ $75 (sold to Alpha customer, full remaining cash payable immediately)
14 Nov 15 3 Purchase: 800 units @ $60 from supplier A (on account)
15 Nov 16 Purchased a six-month maturity note with a 6% interest rate issued by the client and lent $6,000 to a client.
November 16 Sold 1,200 units to 20 Beta customers for $78 (on account)
November 17 Sold 500 units to 22 Gamma customers for 80 (cash)
18 November 25 5 returned from the 22 November sale and Gamma customer received full refund instantly
19 November 29 Repurchased 100 shares at $16 each at year-end to reward employees
20 November 30 Announced cash dividends to common stock at $0.10 per share (ignore dividends on preferred stock), payable at the beginning of next year
21 November 30 Receives an invoice from the bank for monthly service fee $100
22 November 30 Monthly sales expense is $2,000 and fully paid
23 November 30 Monthly administrative fee is $1,500 and fully paid
24 November 30 Electricity bill for the current month pays in cash $500
25 November 30 $8,000 accrued salary expense for the month, payable at the beginning of next month
26 November 30 Bank pays the service fee in cash
27 November 30 Cash interest on monthly short-term investment $150
28 November. Supplies $800 at 30 months

Additional Information Method of estimating bad debt expense: 3% Net Credit Sale
Depreciation method for property: SL
Depreciation method for delivery truck: DDB
With permanent inventory: FIFO
The income tax rate is 30%

Answer rating: 100% (QA)

Journal entries Date Account Title and Explanation Debit Credit 01Nov Cash 25000 shares x 10 250000 Common Stock 25000 shares x 1 25000 Paidin Capital in excess of par valueCommon Stock 25000 x 9 2250... View the full answer