Assume there is a small shoe store in your neighborhood with a single owner. The owner started the business on December $1,2018$ and sells two types of shoes: a comfortable sneaker that is something athletes would purchase, and a comfortable dress shoe that looks dressy but has the comfort of a sneaker. The name of the business is The Shoe Horn. Complete tasks A and B that follow, using the detailed instructions for each. Following is a list of all transactions that occurred during December $2018.$

a$.$ Dec$\mathrm{.}1$ Jack Simmons, the owner contributed a $$500,000$ check from his personal account, which he deposited into an account opened in the name of the business, to start the business.

b$.$ Dec$\mathrm{.}1$ He rented space that had previously been used by a shoe store and wrote check no$.100$ for $$9,000$ for the first six month$$s rent.

c$.$ Dec$\mathrm{.}2$ He paid for installation and phone usage $$300($check no$.101)$

d$.$ Dec$\mathrm{.}2$ He paid for advertising in the local paper $$150($check no$.102).$ The ads will all run in December.

e$.$ Dec$\mathrm{.}2$ He purchased $$500$ of office supplies $($check no$.103)$

f$.$ Dec$\mathrm{.}3$ He paid $$300$ for insurance for three months $($December $2018,$ January and February $2019$ using check no$,104).$

g$.$ Dec$\mathrm{.}4$ He purchased $800$ pairs of sneakers at $$40$ a pair$$ on account from Nike $($using purchase order no$.301).$ Payment terms were $2/10,$ net $30.$ Assume the shoe store uses the perpetual inventory system.

h$.$ Dec$\mathrm{.}5$ He purchased $500$ pairs of dress shoes from Footwear Corp. on account for $$20$ a pair $($using purchase order no$.302).$ Payment terms were $2/10,$ net $30$

i$.$ Dec$\mathrm{.}10$ He made a sale on account of $20$ pairs of sneakers at $$100$ a pair, to a local University $$ Highland University $($sales invoice number $2000)$ for their basketball team. Payment terms were $2/10$ net $30.$

j$.$ Dec$\mathrm{.}11$ He made a sale on account of $2$ pairs of dress shoes at $$50$ a pair $($sales invoice no$.2001)$ to a local charity, U$.$S$.$ Veterans, that intended to raffle them off at one of their events.

k$.$ Dec$\mathrm{.}12$ He made a sale on account to The Jenson Group of $300$ pairs of dress shoes at $$50$ a pair, to use as part of an employee uniform. Payment terms were $2/10$ net $30.$

l$.$ Dec$\mathrm{.}14$ He made a cash sale for $2$ sneakers at $$120$ each and $1$ pair of shoes for $$60.$

m$.$ Dec$\mathrm{.}14$ He paid the amount owed to Footwear Corp $($check no $105)$

n$.$ Dec$\mathrm{.}17$ Highland University returned $2$ pairs of sneakers they had previously purchased on account.

o$.$ Dec$\mathrm{.}18$ He received a check from Highland University in full payment of their balance.

p$.$ Dec$\mathrm{.}20$ He made a cash sale to Charles Wilson of three pairs of sneakers at $$120$ each and $1$ pair of dress shoes at $$60.$

q$.$ Dec$\mathrm{.}20$ He made a partial payment to Nike for $$20,000($check number $106)$

r$.$ Dec$\mathrm{.}23$ Received a $$400$ utility bill which will be paid in January.

s$.$ Dec$\mathrm{.}27$ Received a check from The Jenson Group in the amount of $$9,000.$

t$.$ Dec$\mathrm{.}28$ He paid $$2,000$ of his balance to Nike $($check number $107)$

Chart of Accounts

$1100$ Cash

$1120$ Accounts Receivable

$1130$ Merchandise Inventory

$1140$ Prepaid Insurance

$1150$ Prepaid Rent

$1160$ Office Supplies

$2100$ Accounts Payable

$3100$ Jack Simmons, Capital

$3200$ Jack Simmons, Drawing

$4000$ Sales

$4100$ Sales Returns and Allowances

$4200$ Sales Discounts

$5000$ Cost of Goods Sold

$5100$ Rent Expense

$5110$ Advertising Expense

$5115$ Telephone Expense

$5130$ Utilities Expense

$5140$ Office Supplies Expense

$5150$ Insurance Expense

$1.$ For each of the transactions listed for the month of December $2018,$ identify the journal to which the entry should be recorded. Your possible choices are as follows: general journal $($GJ$),$ cash receipts journal $($CR$),$ cash disbursements journal $($CD$),$ sales journal $($SJ$),$ or purchases journal $($PJ$).$ Templates for the journals and ledgers have been provided.

$2.$ Enter each transaction in the appropriate journal using the format provided.

$3.$ Total the four special journals, and post from all of them to the general ledger provided on the last day of December.

$4.$ Post each entry to the appropriate subsidiary ledger on the date the transaction occurred.

$5.$ Prepare a trial balance.

$6.$ Prepare an accounts receivable schedule and an accounts payable schedule.