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:
Debtors A/cDr5000
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 7200 3. On January 2nd the company paid $500 by check for a three year buildings insurance policy. Insurance Premium ...
