JAMONA CORPORATION

Jamona Corporation

Jamona Corporation

Introduction

The main purpose of this paper is to prepare the general journal entries of Jamona Corporation and with appropriate backup lead schedules for investments, inventory, fixed assets, and capital leases.

Discussion

General Journal Entries

For the Year 2006-2007

Date

Accounts

Debit

Credit

1/6/2006

Purchase of bonds

300,000

 

 

322,744

 

 

Cash

 

622,744

 

Cash

30000

 

 

32274.4

 

 

Bond Yield

 

62274.4

 

Interest Expense

36000

 

 

38729.28

 

 

Cash

 

74729.28

31/3/2007

Inventory Purchased (FIFO)

44600

 

 

Cash

 

44600

6/7/2007

Land

400,000

 

 

Building

1,200,000

 

 

Machinery and equipment

800,000

 

 

Shares

2100000

 

 

Cash

 

300,000

15/12/2007

Repairs to building

$105,000

 

 

Construction of bases for machinery to be installed later

135,000

 

 

Driveways and parking lots

122,000

 

 

Remodeling of office space in building

161,000

 

 

Special assessment by city on land

18,000

 

 

Cash

 

$541,000

20/12-2007

Machinery

260,000

 

 

Discount

5200

 

Cash

 

254,800

 

Freight Charges

10,500

 

 

Cash

 

10,500

 

Lease

43340

 

 

Accounts Payable

34,672

 

Cash

 

8,668

Notes Disclosure

Investments

The production of goods and services requires the use of various factors, including the capital where we include all factors of production durables (machinery, factories, etc.). Investment is the flow of product intended to increase the stock of capital, thus increasing the productive capacity of a country. This shows that investment is necessarily inter-temporal because their aim is to increase production capacity in the future. Fluctuations in investment play a role in the fluctuations of output and employment, as expressed in his General Theory Keynes, but especially in the long-term growth of the economy.

Investment Rating

According to national accounts, there are three areas of investment spending:

- Investment in fixed assets: measures business spending in the physical structure occupied by the business called "plant" (e.g. factories, offices) and "teams" (e.g. machinery, vehicles).

- Investment in inventories: includes the stock of raw materials, unfinished goods in production and finished goods held by businesses. As a decline in business, inventories are considered by the national accounts as a divestiture.

- Investment in residential structures: total expenditures on both housing maintenance as incurred in the production of new housing. We cannot consider investment acquisition, by one family, a home of another family, as this is a simple transfer of ownership.

Inventories

An inventory is the existence of movable and immovable property of the company to trade with them, bought and ...