Fleet & Taylor

1. On 1 December, 2005, Fleet  company paid $4,500 rent for some office space which was debited in full to the prepaid rent account. The rent was for three months. Assuming Sally’s accounting year ends on 3 1 December: give the adjusting entry required on 21 December. 2005.

2. On 1 October, Taylor Bicycle Store had an inventory of 20 ten speed bicycles at a cost of $150 each. During the month of October the following transactions occurred. Assume John uses a perpetual inventory system.
Oct 4 Purchased 205 bicycles at a cost of $150 each from the LX Bicycle Supply company terms 2/10 n/30.
Oct 5 Paid freight of $780 on the 4 October purchased
Oct 6 Sold 8 bicycles from the 1 October inventory to XYZ Team for $250 each, terms 2/10, n/30.
Oct 7 Received credit from the LX Bicycle Supply company for the return of 12 defective bicycles.
Oct 13 Issued a credit memo to XYZ Team for the return of defective bicycles
Oct 14 Paid LX Bicycle Supply company in full, less discount.

Required:
Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system.