Barry and Toni are the only shareholders. Each owns 50% of the issued common stock in their business. Baritone rented a vacant store and started operations on January 1, 2021. The store was opened to the public on January 9, 2021.

1. Prepare and record journal entries for the above transactions in the General Journal (GJ1)

2. Post the journal entries for the January transactions to the respective General Ledger Accounts (T-Accounts) below.

Additional Details # Name Business type Accounting method Accounting period Baritone Music Inc. Retail Accrual Monthly January 1 to December 31 Perpetual Baritone Music Inc. follows US GAAP Fiscal year Inventory method used Accounting Policies Inventory of Instruments sold Item # OSACGT OSCLGT IBELBS IBELGT YAELBS YAACBS YAACGT Guitar Type Acoustic Guitar Classical Guitar Electric Bass Electric Guitar Electric Bass Acoustic Bass Acoustic Guitar Vendor Oscar Schmidt Oscar Schmidt Ibanez Ibanez Yamaha Yamaha Yamaha Cost $ 110 $ 105 $ 115 $ 110 $ 100 $ 90 $ 85 Sales Price $170 $165 $175 $180 $150 $140 $130 Major Customers Business Type Customer Name Ben & Jo Music Academy Harps College Music Department Louis Jazz Studio Employees Employee Name Pay Frequency Barry Cooper Monthly - $1,500 Toni Moore Monthly - $1,500 Violet Lyn - works 20 hrs per week Bi-weekly on Fridays - $15 per hour Transactions during January 2021 * Date January 1 January 1 January 1 January 1 Transaction Barry and Toni each contributed $24,000.00 to the business in exchange for a total of 12,000 shares of capital stock. The par value of the shares is $0.50. Baritone paid $3,000.00 for the first month's rent. Baritone paid $1,200.00 to an insurance company for the first year. Baritone placed the following orders for guitars: 20 OSACGT Acoustic Guitars for $ 110 each 10 OSCLGT Classical Guitars for $ 105 each 12 IBELBS Electric Bass for $ 115 each 10 IBELGT Electric Guitar for $ 110 each 8 YAELBS Electric Bass for $ 100 each 8 YAACBS Acoustic Bass for $ 90 each 10 YAACGT Acoustic Guitar for $ 85 each January 5 All items from Oscar Schmidt were received in good order. Payment is due within 30 days. January 6 All items from Ibanez were received were received in good order. Payment is due within 30 days. January 6 All items from Yamaha were received in good order. Payment is due within 30 days. January 9 Sold the following guitars to various walk in cash customers: 5 OSACGT Acoustic Guitars for $ 170 each 2 OSCLGT Classical Guitars for $ 165 each 4 IBELBS Electric Bass for $ 175 each 1 IBELGT Electric Guitar for $ 180 each 2 YAACBS Acoustic Bass for $ 140 each January 12 Sold on account the following guitars to Ben & Jo Music Academy: 1 OSACGT Acoustic Guitar for $ 170 each 2 OSCLGT Classical Guitars for $ 165 each 1 IBELBS Electric Bass for $ 175 each 2 YAACBS Acoustic Bass for $ 140 each January 13 Baritone sold the following guitars to various walk-in cash customers: 1 IBELBS Electric Bass for $ 175 each 1 IBELGT Electric Guitar for $ 180 each 1 YAACBS Acoustic Bass for $ 140 each January 14 A customer returned and got a refund for 1 OSACFS Acoustic Guitar that had been purchased on January 9 for $170 each. The guitar was still in perfect condition and could still be resold at the same price. January 15 Paid bi-weekly wages to Violet Lynn for 40 hours worked January 16 Sold the following guitars to various walk in cash customers: 3 OSACGT Acoustic Guitars for $ 170 each 2 OSCLGT Classical Guitars for $ 165 each 2 IBELBS Electric Bass for $ 175 each 1 IBELGT Electric Guitar for $ 180 each 2 YAACBS Acoustic Bass for $ 140 each January 19 Sold on account the following guitars to Harps College Music Department: 2 OSACGT Acoustic Guitars for $ 170 each 2 OSCLFS Classical Guitars for $ 165 each 2 IBELBS Electric Bass for $ 175 each 2 YAELBS Electric Bass for $ 150 each 2 YAACGT Acoustic Guitar for $ 130 each January 20 Baritone placed the following orders for guitars: 10 OSACGT Acoustic Guitars for $ 110 each 10 OSCLGT Classical Guitars for $ 105 each 10 IBELBS Electric Bass for $ 115 each 3 IBELGT Electric Guitar for $ 110 each 4 YAELBS Electric Bass for $ 100 each 8 YAACBS Acoustic Bass for $ 90 each 6 YAACGT Acoustic Guitar for $ 85 each January 21 January 21 Baritone collected one half of the accounts receivable owed by Ben & Jo Music Academy for the January 12 sale. There are no discounts offered for early payment. Baritone Sold the following guitars to various walk-in cash customers: 2 OSACGT Acoustic Guitars for $ 170 each 2 IBELGT Electric Guitar for $ 180 each 3 YAACGT Acoustic Guitars for $ 130 each January 23 Baritone Sold the following guitars to various walk-in cash customers: 3 OSACGT Acoustic Guitars for $ 170 each 2 IBELGT Electric Guitar for $ 180 each 2 YAELBS Electric Bass for $ 150 each 2 YAACGT Acoustic Guitar for $ 130 each Paid bi-weekly wages to Violet Lynn for 40 hours worked Paid monthly salaries for Barry and Toni Accrued utilities expense for January at an estimated amount of $600.00. Utility bill has not yet been received. Payment will be made in February. January 29 January 30 GJ1 Date Account and Explanation Debit Credit Post Ref. (Ledger Account to post to) 100 Jan 1 Cash 48,000 Common Stock 300 6,000 42,000 310 Additional Paid in Capital Issued 12, 000 shares of capital stock Jan 1 Paid January rent Jan 1 Paid insurance for the year Jan 5 Received guitars from Oscar Schmidt Account #100 - Cash # Description or Explanation Ref. Debit Credit Balance Date Jan 1 2 Account #110 1 Accounts Receivable Ben & Jo Music Academy Description or Explanation Ref. Debit Credit Balance Date Jan Account #110 2 Accounts Receivable Harps College Music Department Description or Explanation Ref. Debit Credit Balance Date Jan Account #110 - 3 Accounts Receivable Louis Jazz Studio Account #310 Additional Paid In Capital Description or Explanation Ref. Debit Credit Date Jan Balance Account #320 Retained Earnings Description or Explanation Ref. Debit Credit Balance Date Jan