5 Purchased Inventory for $10,000 ($3,500 on account) 6 Billed for Utilites $115 to be paid in February 7 You were prepaid for $750 worth of services from Client 1 8 Accrued Salaries expense for your crew $2,000 9 10 January Utilities paid 11 January Salaries paid 12 Service revenue earned from January 13 Your patent was approved for 5 years. Cost $12,000 14 3,000 of Office Supplies were purchased 15 Sold 80% of inventory for $20,000 Purchased $400,000 worth of inventory on account. Freght in was an additional 1% of 16 cost Contracted to provide client services for $2,000 per month beginning March 1st(Client 17 will pay in cash when due) 18 Sold inventory that cost $5,000 for $11,000 on terms 2/10 net 30 19 Customer pays for inventory 5 days later 20 Paid $8,000 for social media advertising 21 Purchased inventory on account to bring account Inventory account balance to $500K 22 On April 1, Acquired Land, Building, & Equpment in lump sum purchase for $2M. Market 23 value for each was $500K for land, $500K for Equipment, $1.5M for Building. (Mortgage) 24 *Building has a residual value that is 10% of cost and 40 years useful life 25 *Equipment has no residual value and 8 years of useful life