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Selfish Gene Company is a merchandising firm The following events occurred during the month of May Note Selfish Gene maintains a perpetual inventory system May 1 Received $40000 cash as new

Selfish Gene Company is a merchandising firm. The following events occurred during the month of May. (Note: Selfish Gene maintains a perpetual inventory system.)

May 1 Received $40,000 cash as new stockholder investment.

3 Purchased inventory costing $8,000 on account from Dawkins Company; terms 2/10, n/30.

4 Purchased office supplies for $500 cash.

4 Held an office party for the retiring accountant. Balloons, hats, and refreshments cost $150 and were paid for with office staff contributions.

5 Sold merchandise costing $7,500 on account for $14,000 to Richard Company; terms 3/15, n/30.

8 Paid employee wages of $2,000. Gross wages were $2,450; taxes totaling $450 were withheld.

9 Hired a new accountant; agreed to a first-year salary of $28,000.

9 Paid $1,500 for newspaper advertising.

10 Received payment from Richard Company.

12 Purchased a machine for $6,400 cash.

May 15 Declared a cash dividend totaling $25,000.

18 Sold merchandise costing $13,000 for $3,000 cash and $21,000 on account to Feynman Company; terms n/30.

19 Paid Dawkins Company account in full.

22 Company executives appeared on the cover of a national newsmagazine.

Related article extolled Selfish Gene’s labor practices, environmental concerns, and customer service.

23 Market value of Selfish Gene’s common stock rose by $150,000.

25 Purchased a building for $15,000 cash and a $135,000 mortgage payable.

29 Paid dividends declared on May 15.

Instructions:

1. Record the preceding events in general journal form.

2. Which event do you think had the most significant economic impact on Selfish Gene Company? Are all economically relevant events recorded in the financial records?

May 14 2020 View more View Less

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