Asked Aug 11, 2012, 10:17 PM
During August 2011, DB Inc. completed the following transactions:
a. 8/1/11 - Purchased a new piece of equipment for $50,000 signing a six month, 8% note payable.
b. 8/10/11 – Issued 15,000 shares of $2.00 par stock at $8.00 per share.
c. 8/15/11 - Received an invoice for their telephones for $450.00 that will be paid next month.
d. 8/16/11 - Sold $320,000 in product sales and accrued 5% for warranty liability.
e. 8/30/11 – Received a summons that the company was being sued for terminating the office manager last month. The attorneys have advised the company that they will be liable to the employee for back pay of $3,800.
f. 8/31/11 - Purchased 200 shares of Treasury stock at $6.00 per share
g. 8/31/11 – Accrued interest on the note signed 8/1/11.
1. Prepare the journal entries for the above transactions.