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Prepare the necessary general journal entries for the month of

Question : Prepare the necessary general journal entries for the month of : 3977

Prepare the necessary general journal entries for the month of October for Bosco Company for each situation given below. Bosco uses a perpetual inventory system.

Oct.   5      Paid cash of $12,000 for operating expenses that were incurred and properly recorded in the previous period.

Oct.   8      Purchased merchandise for $20,000 on account. Credit terms: 2/10, n/30; Freight term: FOB Shipping Point.

Oct. 10      Paid freight bill of $470 for merchandise purchased on October 8.

Oct. 12      Borrowed $10,000 from Admire Bank signing an 8%, 3-month note.

Oct. 15      Paid for merchandise purchased on October 8. The company takes all discounts to which it is entitled.

Oct. 20      Sold merchandise for $16,000 to Tom Black on account. The cost of the merchandise sold was $10,000. Credit terms: 2/10, n/30.

Oct. 29      Purchased office equipment for $15,000 paying $4,000 in cash and signing a 3-month, 9% note for the remainder.

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