What are the journal entries including the adjusting entries? What are the journ

Question

What are the journal entries including the adjusting entries? What are the journal entries including the adjusting entries?
COMPANY INFORMATION Your company began operations on January 1, 2016 From January 1, 2017- December 31, 2018 your company's stock is traded on the NYSE with 4,000,000 common shares outstanding with a par value of $.25 >At the close of December 31, 2019, your company's stoclk was trading at $5.00 per share. On November 1 the stock was trading at $3.25. At the end of 2018 and 2017, the value of your stock was $3.80 and $2.90, respectively Use the Cost Method for treatment of Treasury Stock. Use the Allowance Method in accounting for Bad Debts specifically the Percentage of Accounts Receivable Method » The inventory system used by your company is perpetual and the inventory costing method is LIFO > The company's inventory on January 1, 2019 consists of 13,000 units Prior Income Statement Account Balances 2017 Sales, net Cost of Goods Sold $2,280,000 $2,500,000 850,000780,000 565,000785,000 37,050 23,905 18,009 17,080 2,900 6,000 23,000 0,75045,000 Office Supplies Expense 5,000 nse Depreciation Expense Interest Income Interest Expense Gain on Sale Loss on Sale 500,000 500,000 3,676 21,574 56,250 34,900

Explanation / Answer

Journal Entry

Date              Particulars                                                                           Debit($)      Credit ($)

1 Jan              Bank A/c Dr (2,50,000*0.25)                                                   62,500

                           To Share Capital A/c                                                                                 62,500

                       (Being 2,50,000 Additional Shares issued at par i.e $0.25)

1 Jan           Truck A/c Dr                                                                               2,40,000

                       To Cash A/c                                                                                             2,40,000

                    (Being Truck purchased for $2,40,000)

                               Depreciation = 1/5 *100=20%

                          200% depreciation=20*200%=40%

                           Depreciation for the First year =2,40,000*0.40=96000

1 Jan               Office Equipment A/c Dr                                                                   97,000

                       To Cash A/c                                                                                                       97,000

                    (Being Office Equipment purchased for $97,000)

                               Depreciation =97000-5000/10=9200

1 Jan           Bank A/c Dr                                                                                       1,38,000

                      To 5yr Long Term Note Payable    1,38,000

                 (Being Long term Note payable taken from bank )

                 

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