Ahlers Clocks is a retailer of wall, mantle, and grandfather clocks and is located in the Empire Mall in Sioux Falls, South Dakota. Assume that a grandfather clock was sold for $12,500 cash plus 4 percent sales tax. The clock had originally cost Ahlers $8,500. Assume Ahlers uses a perpetual inventory system.

1.

Indicate the effects (accounts, amounts, and + for increase, ? for decrease) for the above transactions. (Enter all amounts as positive values.) please indicate if it will effect assets, liabilities or stockholder equity and if it will be a + or - and account name.

2.	Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)