Reference no: EM132719434

Problem 1: For the following independent transactions, make the appropriate journal entry to record the transaction.

a. The firm collected a note receivable of $8,000 on January 2.

b. Paid a note payable of $16,000 on January 2.

c. Acquired merchandise inventory costing $30,000 on January 21 with payment of $16,000 in cash and the remainder by credit.

d. Issued an additional 400 shares of common stock for $125 per share on January 28. The par value of the stock is $100.

e. On January 11, 2009, the firm pays €40,000 cash to rent office space, furnishings, and a warehouse for 12 months starting from February 1st, 2009.

f. On February 20, the firm receives €22,000 from a customer for future merchandise shipments.

g. March 12, the firm sells merchandise at a selling price of €70,000; the merchandise sold had cost Dugan €40,000. The customer agreed to pay Dugan in the second quarter.