TRANSACTIONS FOR THE MONTH OF JANUARYâNote that wewill ignore Sales Tax for this project. Normally, one would have toprovide an explanation for each general journal entry. However,since we are recording all entries in the general journal,explanations will not be necessary.

Jan 2 Issued abond, face value $100,000, to Daniel Scheriâs Investment Companyfor $91,000 cash. Terms of the bond is 5 years and the statedinterest rate is 9.6%. Interest and amortization will be recordedas an adjusting entry the end of the month.

2 Issued6,000 shares of common stock for $50,000. Remember that commonstock is always recorded at par value.)

3 Sold aYamaha Waverunner for $8,000 on account to Buena by the Shore,).Issued Invoice No. 719. (Note that we are using FIFO forinventory)

(Note that when making a saleusing a perpetual inventory system, you always need two entries,one recognizing the sale, and one reducing inventory.)

Cash or/and AccountsReceivable XX

Sales XX

Cost of GoodsSold XX

MerchandiseInventory XX

3 Purchased a SnyderCraft for $16,800 on account from Szumowskiâsâs Boats, Invoice No.630, terms 3/10, n/60. Note that since we are using a perpetualinventory system, all purchases and sales need an entry in theaccount MerchandiseInventory.

4 Purchasedvarious boat merchandise of $3,000 from Szumowskiâsâs Boats onAccount, Invoice No. 631, terms 3/10, n/60.

4 Issued Check No. 292 toSzumowskiâsâs Boats in full settlement of our December accountbalance --Invoice No. 580, terms n/30.

Issued credit memorandum No. 75 to Parth Patelâs Boats for$1,000 for miscellaneous merchandise previously purchased. Our costand value is 500. (Reverse the entry listed above on the2^nd but use Sales Returns and Allowance instead of theaccount Sales and the numbers given in this entry.)

4 IssuedCheck No. 293 to Copier Repair Co. for copier repairs, $500.

5 Receivedpayment in full from Parth Patelâs Boats on sale made in December.(Do not forget the credit memorandum on the 4th.)

5 Sold aSeahawk to Evan Hughes Boats, for $36,000. We received $10,000 as adown payment. Issued Invoice No. 720.

Returned defective merchandise from the December 3^rdpurchase to Szumowskiâsâs Boats and received a $500 creditmemorandum. (Credit Merchandise InventoryâBoatSupplies)

6 Sold all the old warehouse storage equipment for $22,000. Thewarehouse equipment has a five-year life and a salvage value of$4,000. Assume the company uses the straight-line method todepreciate Warehouse Equipment. (Step 1âBring the depreciationup to date by depreciating the warehouse for one month. Step2âRemove the asset and accumulated depreciation and debit cash.Step 3âPlug to a realized gain or loss account-- 701.)

7 Sold boatmerchandise on account to Paige Connery Best Buys for $900, ourcost $450. Invoice no. 720.

8 IssuedCheck No. 294 to Amanda Muetterâs Contractors to purchase aBuilding for $150,000. Straight-line method will be used over 20years without any salvage value. At this time, you only will needto make the entry for the purchase of the building. (Note, that amonthâs depreciation will have to be recorded as an adjusting entryat the end of the period.)

10 IssuedCheck No. 295 to the Internal Revenue Service in payment of FICAtaxes accrued as of December 30 (FICA Taxes Payableâ look atbeginning trial balance for amount.)

10 IssuedCheck No. 296 to the Internal Revenue Service in payment of federalincome taxes withheld as of December 30. (Employeesâ FederalIncome Taxes Payableâlook at beginning trial balance foramount.)

.

Issued Check No. 297 to Kyj and Cheatem Investment Company for$3,000 of

equity marketable securities to hold excess cash. (Thisshould be debited

to Investments--Available for Sale Securities âAccount number109.)

11 IssuedCheck No. 298 to Mathew Hamiltonâs Distributors in full settlementof the December 30 purchase, Invoice No. 1002, terms n/20.

11 IssuedCheck No. 299 to Szumowskiâsâs Boats in full settlement of ouraccount for the two purchases early this month. (Recall the creditmemorandum on the 5th.) (Note that when paying suppliers withina discount period, one must credit Merchandise Inventory.)

15 Check No.300 voided. (No entry needed.)

15 Sold boatsupplies on account to Parth Patelâs Boats , for $1,800 (Cost$900). Issued Invoice No. 721.

Question

TRANSACTIONS FOR THE MONTH OF JANUARYâNote that wewill ignore Sales Tax for this project. Normally, one would have toprovide an explanation for each general journal entry. However,since we are recording all entries in the general journal,explanations will not be necessary. Jan 2 Issued abond, face value $100,000, to Daniel Scheriâs Investment Companyfor $91,000 cash. Terms of the bond is 5 years and the statedinterest rate is 9.6%. Interest and amortization will be recordedas an adjusting entry the end of the month.  2 Issued6,000 shares of common stock for $50,000. Remember that commonstock is always recorded at par value.)    3 Sold aYamaha Waverunner for $8,000 on account to Buena by the Shore,).Issued Invoice No. 719. (Note that we are using FIFO forinventory)  (Note that when making a saleusing a perpetual inventory system, you always need two entries,one recognizing the sale, and one reducing inventory.) Cash or/and AccountsReceivable XX  Sales XX  Cost of GoodsSold XX  MerchandiseInventory XX  3 Purchased a SnyderCraft for $16,800 on account from Szumowskiâsâs Boats, Invoice No.630, terms 3/10, n/60. Note that since we are using a perpetualinventory system, all purchases and sales need an entry in theaccount MerchandiseInventory.   4 Purchasedvarious boat merchandise of $3,000 from Szumowskiâsâs Boats onAccount, Invoice No. 631, terms 3/10, n/60.    4 Issued Check No. 292 toSzumowskiâsâs Boats in full settlement of our December accountbalance --Invoice No. 580, terms n/30. Issued credit memorandum No. 75 to Parth Patelâs Boats for$1,000 for miscellaneous merchandise previously purchased. Our costand value is 500. (Reverse the entry listed above on the2nd but use Sales Returns and Allowance instead of theaccount Sales and the numbers given in this entry.) 4 IssuedCheck No. 293 to Copier Repair Co. for copier repairs, $500.   5 Receivedpayment in full from Parth Patelâs Boats on sale made in December.(Do not forget the credit memorandum on the 4th.)   5 Sold aSeahawk to Evan Hughes Boats, for $36,000. We received $10,000 as adown payment. Issued Invoice No. 720.  Returned defective merchandise from the December 3rdpurchase to Szumowskiâsâs Boats and received a $500 creditmemorandum. (Credit Merchandise InventoryâBoatSupplies)  6 Sold all the old warehouse storage equipment for $22,000. Thewarehouse equipment has a five-year life and a salvage value of$4,000. Assume the company uses the straight-line method todepreciate Warehouse Equipment. (Step 1âBring the depreciationup to date by depreciating the warehouse for one month. Step2âRemove the asset and accumulated depreciation and debit cash.Step 3âPlug to a realized gain or loss account-- 701.) 7 Sold boatmerchandise on account to Paige Connery Best Buys for $900, ourcost $450. Invoice no. 720.  8 IssuedCheck No. 294 to Amanda Muetterâs Contractors to purchase aBuilding for $150,000. Straight-line method will be used over 20years without any salvage value. At this time, you only will needto make the entry for the purchase of the building. (Note, that amonthâs depreciation will have to be recorded as an adjusting entryat the end of the period.)    10 IssuedCheck No. 295 to the Internal Revenue Service in payment of FICAtaxes accrued as of December 30 (FICA Taxes Payableâ look atbeginning trial balance for amount.)    10 IssuedCheck No. 296 to the Internal Revenue Service in payment of federalincome taxes withheld as of December 30. (Employeesâ FederalIncome Taxes Payableâlook at beginning trial balance foramount.) . Issued Check No. 297 to Kyj and Cheatem Investment Company for$3,000 of  equity marketable securities to hold excess cash. (Thisshould be debited  to Investments--Available for Sale Securities âAccount number109.)   11 IssuedCheck No. 298 to Mathew Hamiltonâs Distributors in full settlementof the December 30 purchase, Invoice No. 1002, terms n/20.   11 IssuedCheck No. 299 to Szumowskiâsâs Boats in full settlement of ouraccount for the two purchases early this month. (Recall the creditmemorandum on the 5th.) (Note that when paying suppliers withina discount period, one must credit Merchandise Inventory.)   15 Check No.300 voided. (No entry needed.)   15 Sold boatsupplies on account to Parth Patelâs Boats , for $1,800 (Cost$900). Issued Invoice No. 721.

Apr 1	Received $19,800 and issued common stock.
2	Purchased $200 of office supplies on account.
4	Paid $14,300 cash for land to use as a building site.
6	Performed service for customers and received cash of $2,600.
9	Paid $100 on accounts payable.
17	Performed service for UFax on account totaling $1,900.
23	Collected $100 from UFax on account.
30	Paid the following expenses: salary, $1,900; rent, $1,300.

DATE	TRANSACTION TYPE & NUMBER	AMOUNT	BALANCE
BEGINNING BALANCE			$12,850.00
6/2/2014	CHECK #1570	226.00	12,624.00
6/5/2014	CHECK #1571	83.00	12,541.00
6/6/2014	EFT #43	127.00	12,414.00
6/10/2014	DEPOSIT #104	1,550.00	13,964.00
6/15/2014	CHECK #1572	145.00	13,819.00
6/15/2014	CHECK #1573	185.00	13,634.00
6/20/2014	DEPOSIT #105	885.00	14,519.00
6/24/2014	EFT #44	143.00	14,376.00
6/28/2014	CHECK #1574	87.00	14,289.00
6/28/2014	CHECK #1575	95.00	14,194.00
6/30/2014	DEPOSIT #106	425.00	14,619.00
6/30/2014	CHECK #1576	155.00	14,464.00
6/30/2014	CHECK #1577	145.00	$14,319.00

FIRST NATIONAL BANK
ACCOUNT SUMMARY JUNE 30, 2014
BEGINNING BALANCE	$12,850.00
PAYMENTS	$1,021.00
DEPOSITS	2,440.00
FEES	20.00
ENDING BALANCE	$14,249.00
PAYMENTS
DATE	REFERENCE	AMOUNT
6/5/2014	1570	$266.00
6/9/2014	1571	83.00
6/10/2014	43	127.00
6/19/2014	1572	145.00
6/28/2014	1573	185.00
6/28/2014	NSF	120.00
6/30/2014	1575	95.00
TOTAL PAYMENTS		$1,021.00
DEPOSITS
DATE	REFERENCE	AMOUNT
6/11/2014	104	$1,550.00
6/23/2014	105	885.00
6/30/2014	INTEREST	5.00
TOTAL DEPOSITS		$2,440.00
FEES
6/30/2014	SVC CHG	$20.00
TOTAL FEES		$20.00

Classification	Account Number	Account Name
ASSETS	101	Cash
	110	Accounts Receivable
	112	Allowance for Doubtful Accounts
	115	Notes Receivable
	116	Interest Receivable
	120	Supplies
	130	Prepaid Insurance
	140	Inventory
	150	Equipment
	155	Accumulated Depreciation â Equipment
LIABILITIES	201	Accounts Payable
	220	Notes Payable
	225	Interest Payable
OWNERâS EQUITY	301	Ownerâs Capital
	305	Ownerâs Drawings
	310	Income Summary
REVENUES	401	Lawn Service Revenue
	410	Sales Revenue
	415	Sales Returns and Allowances
	420	Interest Income
COST OF GOODS SOLD	501	Purchases
	505	Purchase Returns and Allowances
EXPENSES	620	Supplies Expense
	630	Fuel Expense
	640	Repair and Maintenance Expense
	650	Advertising Expense
	660	Insurance Expense
	670	Depreciation Expense
	680	Interest Expense
	690	Bad Debt Expense
	695	Miscellaneous Expense




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DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT