A JE # B Activity For The Month of January 1 Mason Automotive sells 7,000,000 shares at $5 par for $21 on January 1st, 2022. 2 3 On January 2nd, Mason Automotive receives $36 Million advance payment from a customer, Highland Inc., to manufacture 6,200 cars. Mason Automotive buys a patent from Apple for $18.15 Million on January 3rd, 2022. The patent has a legal life of 22 years and useful life of 21 years. Record the necessary entry as of January 10th, 2022. Assume the patent was purchased using cash. 4 Mason Automotive purchased $180 Million dollars worth of inventory on January 4th, 2022. $88 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. 5 6 Ed Mason, the CEO, hires 4,300 employees, whom will receive a combined salary of $8.2 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 6th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, January 1st, 2022. Mason Automotive purchases fixed assets of $160 Million that will have a useful life of 16 years and a salvage value of $50 million on January 8th, 2022. $70 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. 7 Mason Automotive issues a bond payable on January 11th, 2022 with a face value of $130 Million at 96. The bond will have a useful life of 14 years with an interest payment of 8.25% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 8th, 2022. Note: When considering the amortization of the discount or premium, assume the straight line method is used. Interest will be accrued on a monthly basis. 8 Mason Automotive pre-pays for rent Expense for the next four years of $26 Million on January 1st, 2022. 9 Mason Automotive purchased $7.5 Million dollars worth of supplies on account on January 13th, 2022.