1. Johnny's sold 10,000 shares of $5 par value common stock for $20 per share. 2. * Johnny's leased a building for $36,000 per year, paying cash on January 2. 3. * Johnny's bought inventory handling equipment on January 2 for $70,000, receiving a bill from the equipment supplier. A trucking company sent Johnny an invoice for $4,000 to transport the equipment shipped to Johnny's warehouse. A contractor send Johnny another invoice for $3,000 to install the equipment and rewire the warehouse to run the equipment. The equipment should last six years and have a salvage value (for scrap steel) of $5,000. Johnny will use the straight-line method of depreciation. 4. Johnny bought inventory (on account) of noise-making plastic animal toys on January 15 for $80,000. 5. * Johnny issued 1,000 Series AAA bonds that sold at par for $100 each on March 1, 20X8. The bonds have a 12% annual interest rate, payable every three months. The bonds mature in 10 years. 6. On March 15, Johnny sold noise-making plastic animal toys valued at $10,000 in inventory for $20,000 cash. 7. On April 24, Johnny settled the account payable for inventory. 8. Johnny paid the bills for the shipping and electrical work in Event #3 on June 1. 9. * On June 15, Johnny sold noise-making plastic animal toys valued at $50,000 in inventory for $120,000 on account. Johnnys industry benchmarks suggest 1% of credit sales are never collected. 10. On August 15, Johnny paid cash to repurchase 1,000 shares of common stock for $22 per share. 11. On November 1, Johnny declared a cash dividend of $1.00 per share for holders of common stock, payable on January 15, 20X9. 12. On November 15, Johnnyy collected $100,000 cash from customers settling their accounts receivable. 13. * On December 1, Johnny obtained cash for a 12-month, $70,000 note payable. The note carries a 24% interest rate. 14. On December 2, Johnnyy settled the bill for the equipment in Event #3. A. Post events 1-14 to the accompanying transaction record. Show any necessary calculations in a matching row under the transaction record. B. Post adjusting entries for events indicated by a * to the accompanying transaction record. Show any necessary calculations in a matching row under the transaction record. C. Prepare the four financial statements four Johnny Company for 20X9.

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