2) Business Case 60% Daniel, opened a retail nuts store on December 1, current year....
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2) Business Case 60% Daniel, opened a retail nuts store on December 1, current year. The following are the business transactions for December. Dec. 1 Daniel invested 280,000 cash in the business in exchange for 1,000 shares of capital stock./ Dec. 4 A store was purchased for 500,000. A cash payment of 80,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. The note has an interest expense of 6% annual to be paid at the end of each year. Office furniture was purchased for 65,000 cash. The furniture is planned to be replaced for new in 5 years time. Dec. 9 Dec. 10 Acquired 1000kg of pistachios for 50 each. The invoice is due in 15 days. Dec. 15 Contracted and paid an insurance policy for the next year, until Dec 15 of next year, for an amount of 12,000. Dec. 16 Sold 500 kg of pistachios at a price of 100 per kg. Dec. 27 A 550 invoice was received for several legal consulting fees placed in December. The entire amount is due on January 8. Dec. 31 Paid employees 2,200 for salaries earned in December. accounts. 1. 2. 3. Prepare journal entries (including explanations) for each transaction and Prepare a Trial Balance. Is the company profitable according to your knowledge
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