Question

Someone, please help.

Sales Price of Retail Product	Customers are charged $75 for each unit purchased
Cost of Inventory for Products Purchased	Inventory can be purchased for $36 per unit

Price for Services Provided

Customers are charged $87 per hour for services rendered

Record the following transactions in the General Journal.  

Trans.	Date	Description
1	Dec. 1	Borrow $115,000 from the local bank and signed a six-year installment note with payments of $1,905 at the end of each month. The annual interest rate is 6%. Current portion of Note at year end after December payment = 16,500
2	Dec. 1	Purchased a building for $56,000. Paid $2,000 in attorney fees, $4,000 in remodeling costs to ge­­­t the building ready for use. The building has a 25-year useful life with residual value of $2,000.
3	Dec. 1	Sold $4,350 worth of gift cards in opening celebration for services to be provided in December. The gift cards expire at the end of the month.
4	Dec. 1	Sell 16,000 shares of no-par value common stock for $6 per share to obtain the funds necessary to start your business.
5	Dec. 1	Purchase 400 units of inventory on account with terms 3/10 net 30.
6	Dec. 1	Purchase a vehicle necessary for business operations for $21,000 cash. The vehicle has a five year life with a residual value of $3,000.
7	Dec. 1	Pay $6,000 for one year of insurance in advance.
8	Dec. 3	Sell 200 units of inventory to a customer who signs a 6-month promissory note at 6% with interest and principal due at maturity. perpetual method = 2 entries
9	Dec. 3	Purchase Supplies on account, $3,200.
10	Dec. 6	Provide 40 hours of services to customers who pay with gift cards (calculate using your hourly service rate) no terms specified.
11	Dec. 8	Company pays invoice for inventory purchased on December 1st within discount terms.
12	Dec. 10	Purchase an additional 240 units of inventory for cash.
13	Dec. 12	Sell 100 units of inventory to a customer on account with a sales discount of 2/10, n/30. (Perpetual method= 2 entries)
14	Dec. 20	The customer who purchased product on December 12th pays the amount due (within discount period).
15	Dec. 23	Sell 180 units of inventory on account. (Perpetual method = 2 entries)
16	Dec. 31	Record the of $1,905 installment payment on the $115,000 installment note borrowed on December 1st. The annual interest rate is 6%.
17	Dec. 31	Pay employee salaries, $4,000.
18	Dec. 31	Pay cash dividends to shareholders of $0.10 per share.
19	Dec. 31	Vehicle did not meet expectations sold to another company for $23,000. (Record depreciation at date of sale and then record sale).

Answer 1

	General Journal
	Date	Particulars	Dr/Cr	Amount	Amount
	Dec.01	Cash A/c	Dr	1,15,000
		Bank Note payable A/c	Cr		1,15,000
		(Being amount borrowed rom bank@6% annual interest)
	Dec.01	Building A/c	Dr	62,000
		To Cash A/c	Cr		62,000
		(Being purchased building for $56,000 and paid $2,000 in attorney fees, $4,000 in remodeling costs to getting the building ready for use.
	Dec.01	Cash A/c	Dr	4,350
		To Gift Card - payable A/c	Cr		4,350
		(Being gift card for sale of services are recorded)
	Dec.01	Cash A/c	Dr	96,000
		To Common Stock A/c	Cr		96,000
		(being 16,000 shares of no-par value common stock for $6 per share sold)
	Dec.01	Purchase A/c	Dr.	14,400
		To Accounts Payable A/c	Cr		14,400
		(Being Purchased 400 units of inventory on account with terms 3/10 net 30)
	Dec.01	Vehicle A/c	Dr	21,000
		To Cash A/c	Cr		21,000
		(Being Purchased a vehicle necessary for business operations for $21,000 cash. The vehicle has a five year life with a residual value of $3,000)
	Dec.03	Account Receivable A/c	Dr	15,000
		To Sales A/c	Cr		15,000
		(Being 200 units of Inventory sold)	Cr
	Dec.03	Promissory Note Receivable A/c	Dr	15,900
		To Accounts Receivable A/c	Cr		15,000
		To Interest received A/c	Cr		900
		(Being 6-month promissory note at 6% with interest and principal due at maturity received)
	Dec.03	Supplies A/c	Dr	3,200
		To Accounts payable A/c	Cr		3,200
		( Being Purchased Supplies on account)
	Dec.06	Gift Card-Payable A/c	Dr	3,480
		To Sales of Services A/c	Cr		3,480
		(Being 40 hours of services is recorded through gift card)
	Dec.08	Accounts Payable A/c	Dr	14,400
		To Cash A/c	Cr		13,968
		To Discount received A/c	Cr		432	(3% of 14400)
		(Being pays invoice for inventory purchased on December 1st within discount terms at 3%)
	Dec.10	Purchase A/c	Dr	8,640
		To Cash A/c	Cr		8,640
		(Being Purchased 240 units of inventory for cash)
	Dec.12	Accounts Receivable A/c	Dr	7,500
		To Sales A/c	Cr		7,500
		(Being sold 100 units of inventory to a customer on account with a sales discount of 2/10, n/30)
	Dec.20	Cash A/c	Dr	7,350
		Discount allowed A/c	Dr	150		(2% of 7500)
		To Accounts receivable A/c	Cr		7,500
		(Being The customer who purchased product on December 12th pays the amount due and allowed 2% discount)
	Dec.23	To Accounts Receivable A/c	Dr	13,500
		To Sales A/c	Cr		13,500
		(Being Sold 180 units of inventory on account)
	Dec.31	Bank Note payable A/c	Dr	1,375		(16500/12)
		To Interest paid A/c	Dr	530		(1905 - 1375)
		To Cash A/c	Cr		1,905
		(Being Bank loan note installment paid and interest recorded)
	Dec.31	Salaries A/c	Dr	4,000
		To Cash A/c	Cr		4,000
		(Being salaries paid to employees)
	Dec.31	Dividend paid A/c	Dr	1,600
		To cash A/c	Cr		1,600
		(Being dividend paid @0.10 per shares for 16000 shares)
	Dec.31	Depreciation A/c	Dr	300		(21000-3000)/60
		To Vehicle A/c	Cr		300	(60 means 5*12 months)
		(Being expenses charges to cleaning supplies as per stock)
	Dec.31	Cash A/c	Dr	23,000
		To Vehicle A/c	Cr		20,700	(21000 - 300 Dep)
		To Profit on sale of Vehicle A/c	Cr		2,300
		(Being Vehicle sold at profit to other company)
	Dec.31	Gift Card payable A/c	Dr	870
		To Sale of Services A/c	Cr		870
		(Being Gift card issued is expired and recorded)