Question on journal/adjusting entries


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Hi,

i'm new to accounting. Anyone knows how to solve this question?

Don Company experienced the following transactions and events during December 2019. The company uses allowance method to account for uncollectible receivables.
(1) On 1 December, the company paid $4,800 for a 2-year fire insurance coverage which commenced immediately.
(2) On 1 December, the company took a bank loan of $300,000. The interest is 4% per annum payable annually.
(3) On 10 December, the company wrote off $10,000 balance owed by Jerry Chan who is declared bankrupt.
(4) On 10 December, the company reinstated the account of Emily Tan that was written off in October 2019. The company received $20,000 cash in full payment.
(5) On 15 December, the company issued 1,000,000 shares at $0.50 per share for additional working capital.
(6) On 20 December, the company is sued by one of its competitors for infringement of the competitor’s patent. After discussing with the legal advisors, the management concluded that the loss of the lawsuit was probable, and they must pay out $2 million.
(7) On 30 December, a customer paid $3,000 deposit for goods worth $30,000 to be delivered in January 2020.
(8) Overtime wages of $5,000 for December 2019 were omitted.
(9) A bank service charge of $100 for December 2019 was not recorded by the company.

Analyse the above and prepare the necessary entries to describe them for the month of December 2019
 
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kirby

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Hi Haroon,

I realize you were just trying to be helpful but..

You are a new forum member and as such probably were unaware of the forum policy for the Exams and Studying forum. It reads Please note that if you are looking for assistance with an exam-style question, you must attempt the question yourself before asking for help. You can then state the answer you have so far and explain which aspect you need help with. Anyone posting exam-style questions expecting the answer to be given to them will have their posts removed. Repeat offenders will be banned from the forum.

And actually, you did not answer Dev2020's only question which was
Anyone knows how to solve this question?

To which you could have just answered: "Yes!":)
 
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