Part A: Journal Entries to record accounting transactions
1. On December 31st the company sells on credit $5,000 of goods which had been bought a month previously at a cost of $3,500:
Cost of Goods Sold.Dr..3500
2. On December 31st the company sells an unwanted machine for $1,500. The machine was bought at the beginning of 2012 for $8,200 and was expected to be used for three years after which its value had been forecast to be $1,000.
Cash A/c.Dr 1500
Depreciation of Machinery A/c..Dr 4800
Loss on Sale of Machinery A/c Dr.1900
3. On January 2nd the company paid $500 by check for a three year buildings insurance policy.
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