ACCY 1 Accounting Fundamentals Extra Credit Assignment Journal Entry Practice Complete the following requirements by hand and upload your work in pdf to Canvas by March 20. No late assignment will be accepted. CASE: World Co. commenced operations on January 1, 2018 and has a year end of December 31 (reporting date). The company uses a perpetual inventory method. During 2018, the company had the following events: 1. January 1. Issued common stock for $40,000 cash. 2. April 1 Purchased equipment for $10,000 cash. This equipment has a monthly depreciation expense of $1000. 3. May 1 Paid auto insurance for 12 months in advance for $6,400. 4. July 1 Purchased inventory costing $7,000 on account from Sam Co. Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. In addition, freight costs of $500 were paid in cash. 5. July 10 Paid the amount due on its account payable to Sam Co. within the cash discount period. 6. September 1 Sold all inventory for $20,600 on account to Mac Co. under terms 1/10, n/45. 7. September 10 Received the payment from Mac Co. for the September 1 sale within the discount period. 8. September 30 Received cash from Victory Co. in advance for the merchandise order to be delivered in November. 9. October 1 Paid $4,000 cash for inventory received from Viva Inc. 10. November 31 Delivered the merchandise ordered on September 30 to Victory Co. Requirements: Prepare journal entries for the events above AND appropriate adjusting journal entries.