ACC 211, Inc. is a company that resells pencils for accounting students. ACC 211 opened its door in January of 2016 (the first year of business). Record the transactions in the questions that follow in the general journal format:

1. In January, ACC paid cash for 25,000 pencils at 10cents a pencil.

2. In February, ACC 211 bought 30,000 pencils at 11 cents per unit.

3. In March, ACC 211 sold 40,000 pencils at 50 cents per unit. ACC 211 uses LIFO and collected cash for this transaction.

4. As of March 31, the bank statement showed an ending balance of $18,000. The unadjusted cash balance was $19,171. The following information is available: Deposit in transit $6,902 Credit memo in bank statement for interest earned in December $26 Outstanding check $5,730 Debit memo for service charge, $25

1) Determine the true cash balance by preparing a bank reconciliation as of March 31st

2) Record in general journal format the adjusting entries needed to correct the unadjusted book balance 5. ACC 211 took out a note for $60,000 from the bank on November 1st. The note had a 6% annual interest rate and matured on April 30 of the next year. Interest 2 and principal were paid in cash at the maturity date. Record the acceptance of the note and the adjusting entry at the end of the year.

ACC211 borrowed $25,000 from the UIS Bank, issuing a threeyear, 8% note payable. Payments of $9,700.84 are to be made each year on December 31. The payment will include both the interest and a portion of the principal.

On March 2, 2016, ACC 211 signed an agreement for a line of credit with the UIS Bank. Under the agreement, ACC 211 can borrow up to $50,000 at any time during the following year. ACC 211 will make any borrowings or repayments on the first day of a month and make interest payments on the last day of any month when a balance exists. The annual interest rate will be the bank's prime rate plus 2% and will be applied to the outstanding monthly balance.