3Part 1 Regular Transactions

The following transaction occurredfor Zeta-Z Video Game Suppliesduring the period ended 12/31/x1. They provide services to customers and sell products.

March 1 The company was formed with 3,500,000 shares authorized no par value. March 20 The companyissued 250,000 sharesof (no-par value)stock at $1.50 a share stock. April 7 Created a unique game chair applied for a patent legal costs were $8,000.

April 28 Found a close out deal and purchased two years of office suppliesfor $5,200 on account.

May 1 Purchase a cash register, counter, and some shelving for the store with a Note Payable of $90,000 due in 5 years. The company used the straight-line method for depreciation. The note requires annual principal payment of $18,000 and has an interest rate of 3%.

May 10 Purchased video game for inventory for $105,000 on account. The company uses the FIFO method under a perpetual system to account for inventory

May 31 Purchase two parcels of land for $95,000 - Parcel A was $80,000 and Parcel B was

$15,000. Parcel A was used to build a storage facility. Parcel B is next door to the store. The intention is to have extra land to build a parking lot one day, but the owner does not have any immediate plans to start building.

June 1 Purchased two years of Insurance for $18,000.

June 26 Sold some videogames to a customerfor $15,000. Inventoryhad a cost of $7,600.

The customer paid $9,000cash and the rest on account.

July 7 Soldvintage video game systems to a customerfor $56,000 to a customerfor cash.

Inventory had a cost of $36,400. July 26 Paid employeewages of $9,800.

August 9 A customer gave the store a deposit of $12,000 for to have several retro video games systems repaired. It was uncertain if all the needed parts could be located so no promises were made but the store said they would try and took the money.

August 17 Customer purchased $18,000 of video gameson account. Inventory had a cost of

$9,700.

Sept 10 Invested $23,000of excess cash in securities intend to hold them for several years.

Sept 21 Collected $12,000from a customer that owed you money for goods previously purchased.

Sept 29 Sold one of the shelving units purchased on May 1st. The shelf cost $5,200 and was sold for $3,800.

Oct 1 Landlord offered a big discount so paid one year of storerent for $14,400.

Oct 19 Received a dividend check on investments of $2,200

Nov 8 Received a utility bill for $3,400 for utilityservices received. (Paid on account) Nov 27 Paid $19,500 of the amount owed for supplies.

Dec 15 Paid dividendto shareholders of $10,000.

Chart of Accounts (You can add additional accounts as needed)

100 Cash 300 CommonStock

110 AccountReceivable 310 Retained Earnings

120 Inventory 320 Dividends

125 Supplies 400 Service Revenue

130 Prepaid Insurance 410 Dividend Income

140 Prepaid Rent 450 Gain on Sales

150 Marketable Securities

160 Equipment 500 Costof Goods Sold

165 Accumulated Depreciation 510 Salary Expense

170 Land 515 Rent Expense

175 Land held asinvestment 520 Utilities Expense

180 Patent 530 Depreciation Expense

190 InterestReceivable 540 Insurance Expense

200 AccountPayable 550 Supplies Expense

220 Salary Payable 560 IncomeTax Expense

230 Utilities Payable 570 Interest Expense

240 Unearned Revenue 590 Loss on Sale 250 Note Payable

260 Taxes Payable 270 InterestPayable

Part 1 Instruction

You will prepare the following in excel:

1. General Journal
   1. Journal entries full proper journal entry with descriptions
   2. Post entries to ledger
2. Ledger T accounts
   1. Show beginning balance
   2. Post all activity make sure to include reference to journal entry
   3. Show ending balance.
3. Trial Balance
   1. Unadjusted Trial Balance

NOTE only record the transaction that have occurred DO NOT DO any adjusting entries. The description will include extra information that you will need to do Adjusting entries.