Analyze each transaction statement and prepare the appropriate journal entry(s) to account for JAC Watches Incorporated operating activities for Fiscal Year(January - December) 2012.

1. On January 1, 2012 Cayla, Jinelle, and Angela invested $500,000 cash, land worth $250,000 and a Warehouse Facility worth $350,000 to form JAC Watches Incorporated. JAC Watches Inc will function as a retailer in the business of buying and selling custom watches.

2. On January 1, 2012 JAC Watches Incorporated purchased 25,000 wrist watches on credit at an average wholesale price of $15 per watch. The company plans to re-sale the 25,000 watches purchased at retail prices.

3. On March 1, 2012 JAC Watches Inc sold 5,000 wrist watches for cash, the average sale price per watch is $175. [Hint: this transaction will produce two journal entries].

4. On March 15, 2012 JAC Watches Incorporated purchases Office Equipment on account for $25,000.

5. On April 30, 2012 JAC Watches Inc received a bill for utilities used in the amount of $7,500.[Be careful with this one folks - think about what's going on in the transaction].

6. On May 31, 2012 JAC Watches Inc paid employees for a total of 4,750 hours worked; the average hourly rate of pay is $12.50 per hour.

7. On June 30, 2012 JAC Watches purchased a 2 year insurance policy to start on June 30, 2012 for $24,000.

8. On July 31, 2012 Sun-Glass Hut Paid JAC Watches Inc $562,500 for 2,500 custom watches. As part of the order JAC Watches has promised to in-print Sun-Glass Hut's insignia on each watch band. JAC Watches Inc plans to have 1,500 of these watches ready for shipment no latter than the end of October 2012. The remainder will not be ready for shipment until January of the following year. Prepare the journal entry that AC Watches would record on July 31, 2012.

9. On July 31, 2012 JAC Watches was approved for a $1,500,000, 5 year term loan, bearing interest of 4.75% per annum. Interest payments are due on each July 31st for the next 5 years.

10. On September 30, 2012 JAC Watches Inc shipped Sun-Glass Hut 1,500 of the custom watches paid for in entry "8.)". [Hint1: this transaction will produce two journal entries; Hint2: The average selling price of these watches is a bit higher than normal due to the special requirements the bands require, as discussed ion "8.)" above]. {Be Careful - You will need to perform a few arithmetic calculations as well}