### Calculate Price

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# Record Keeping

oman Inc. has begun operations in 2014. They use the periodic method of accounting for
inventory. You are the new bookkeeper, and you’ll record the following journal entries.
January 1
Chris Loman, the owner of Loman Inc., invested \$60,000. in the corporation to purchase 1000
shares of stock with a \$1.00 par value.
February 1
On February 1, the company received \$2,016. for a four­year technical service subscription, to be
earned proportionally over the next 4 years, and credited a liability account.
Inventory purchases of \$12,000 were made on account to the Super Company, and an asset
account was debited. The invoice was paid on February 15.
April 1
On April 1, the company had cash sales of \$18,400.
On April 1, Loman purchased a 12­month insurance policy for \$1200.
A check for \$1,600. was sent to Richie CPA for professional services.
On April 1, Loman purchased 50 shares of Sweetheart Co. stock as an investment in marketable
securities, and paid \$2200.
The company purchased office supplies of \$188.00 from OfficeMax and debited the Office
Supplies Inventory account.
On April 1, the company bought land for \$8,500.
May 1
On May 1, the company loaned \$4,400. to another company on a 9%, one­year note.
On May 1, Loman borrowed \$10,000. on an 8%, one­year note.
On May 1, the company sold 500 shares of its \$1.00 par value stock for \$16,200.
On May 1, the company bought \$280. of office supplies from Staples.
An invoice for maintenance and repairs of \$467. was paid.
Utilities expense of \$572. was paid on May 1.
August 1
On August 1, the company rented a piece of land from another company for \$2,664. for a three­
year time period. Loman paid in full and charged an expense account on August 1.
On August 1, the company sold land that had originally cost \$8,500. for \$10,000. cash.
On August 1, Loman had cash sales of \$16,400.
December 1
On December 1, Loman paid \$1000.00 for 2 months’ rent in advance.

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Category: Sample Questions