FINANCIAL ACCOUNTING Comprehensive Problem # 2 Journal entries Selected transactions completed by Fore Most Co. during its first fiscal year ending December 31 are as follows: Jan.2 Issued a check to establish a petty cash fund of $600. Mar. 15 Replenished the petty cash fund, based on the following summary of petty cash receipts: Office supplies, $189; miscellaneous selling expense, $125; miscellaneous administrative expense, $205. Cash on Hand is $75 Apr. 5 Purchased $9,000 of merchandise on account, terms 1/10, n130. The perpetual inventory system is used to account for inventory. May 5 Paid the invoice of April 5 after the discount period had passed. 10 Received cash from daily cash sales for $8,920. The amount indicated by the cash register was $8,960. June 2 Received a 60 day, 12% note for $60,000 on account. Aug. 1 Received amount owed on June 2 note, plus interest at the maturity date. 3 Received $900 on account and wrote off remainder owed on a $1,300 accounts receivable balance. (The allowance method is used in accounting for uncollectible receivables.) 28 Reinstated the account written off on August 3 and received $400 cash in full payment. Sept. 2 Purchased land by issuing a $90,000, 90 day note to Ace Development Co., which discounted it at 12%. Oct. 1 Traded office equipment for new equipment with a list price of $160,000. A trade in allowance of $30,000 was received on the old equipment that had cost $90,000 and had accumulated depreciation of $50,000 as of October 1. A 120 day, 12% note was issued for the balance owed. Nov. 30 Journalized the monthly payroll for November, based on the payroll data. Nov. 30 Journalized the employer’s payroll taxes on the payroll. Dec. 1 Journalized the payment of September 2 note at maturity. 30 The pension cost for the year was $45,000, of which $42,800 was paid to the pension plan trustee. ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????