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    Financial Accounting - Journal Entries

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    Dec. 1 Established petty cash account with $400
    Dec. 1 Paid rent expense of $5000 for the month of December
    Dec. 1 Issued $100,000 bonds at par with an interest rate of 6%
    Dec. 3 Purchased $400,000 of inventory on account under the terms 2/10, net 30
    Dec. 5 Sold land for cost, $25,000
    Dec. 9 Sold equipment with an original cost of $30,000, accumulated depreciation of $15,000 for $12,000 cash.
    Dec. 10 Sold inventory on account for $400,000 with a cost of $200,000.
    Dec. 10 Allowance for doubtful accounts is 3% of net sales rounded to the nearest dollar. (see Dec. 10th sales.)
    Dec. 11 Paid inventory purchased on December 3
    Dec. 12 Replenished petty cash receipts. $100 postage expense; $200 Miscellaneous expense; $85 Entertainment expense. Cash in box $13
    Dec. 18 Wrote off uncollectible account $15,000
    Dec. 20 Received payment in full for sale on December 10.
    Dec. 31 Paid salaries and wages expense of $5,000
    Dec. 31 Accrued for interest expense on bonds issues on December 1.
    Dec. 31 Prepaid insurance of $400 expired in December.
    Dec. 31 Record depreciation expense of $1,500.

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