Canyon Canoe Company is a service based company that rents canoes for use on local lakes and rivers and has the following post-closing balances at December 3, 2018.

At the beginning of the new year, Canyon Canoe Company decided to carry and sell T-shirts with its logo printed on them. Canyon Canoe Company uses the perpetual inventory system to account for the inventory.

Requirement:

Journalize and post the transactions. Compute each account balance, and denote the balance as

Bal. Omit explanations. (Assume the company uses the net amount to recordsales.)

Accounts Payable Canoe Rental Revenue Cash 12,125 3.050 Bal. 0 Bal. Bal. Accounts Receivable Wages Payable Rent Expense Purchased 10 T-shirts at $4 each and paid cash. Jan. 1 7,600 1.250 Bal. Bal Sold 6 T-shirts for $10 each, total cost of $24, Received cash. Bal. Purchased 50 T-shirts on account at $5 each. Terms 2/10, n/30. Paid the supplier for the T-shirts purchased on January 3, less discount. 7 Office Supplies Utilities Payable Wages Expense 8 Realized 4 T-shirts from the January 1 order were printed wrong and retuned them for a cash refund. 10 Sold 40 T-shirts on account for $10 each, total cost of $200. Terms 3/15, n/45. 165 295 Bal. Bal Bal. Utilities Expense 12 Received payment for the T-shirts sold on account on January 10, less discount. Prepaid Rent Telephone Payable 14 Purchased 100 T-shirts on account at $4 each. Terms 4/15, n/30. 2,000 Bal. 325 Bal. Bal. Canyon Company called the supplier from the January 14 purchase and told them that some T-shirts were the wrong color. The supplier offered a $50 purchase allowance. Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount 18 the Telephone Expense Land Unearned Revenue 20 85,000 21 Sold 60 T-shirts on account for $10 each, total cost of $220. Terms 2/20, n/30. 350 Bal Bal Bal. 23 Received a payment on account for the T-shirts sold on January 21, less discount. 25 Purchased 320 T-shirts on account at $5 each. Terms 2/10, n/30, FOB shipping point. Building Interest Payable Supplies Expense 27 Paid freight associated with the January 25 purchase, $48. 35,000 0 Bal. Bal. Bal. 29 Paid for the January 25 purchase, less discount. 30 Sold 275 T-shirts on account for $10 each, total cost of $1,300. Terms 2/10, n/30. The following T-accounts in the ledger have been opened for you using the post-closing balances from December 31, 2018: Cash, Accounts Receivable, Merchandise Inventory, Estimated Returns Inventory, Office Supplies, Prepaid Rent, Land, Building, Accumulated Depreciation-Building, Canoes, Accumulated Depreciation-Canoes, Accounts Payable, Utilities Payable, Telephone Payable, Wages Payable, Refunds Payable, Interest Payable, Unearned Revenue, Notes Payable, Common Stock, Retained Earnings, Income Summary, Sales Revenue, Canoe Rental Revenue, Cost of Goods Sold, Rent Expense, Wages Expense, Utilities Expense, Telephone Expense, Supplies Expense, Depreciation Expense-Building, Depreciation Expense Canoes, Interest Expense Accounts Payable Canoe Rental Revenue Cash 12,125 3.050 Bal. 0 Bal. Bal. Accounts Receivable Wages Payable Rent Expense Purchased 10 T-shirts at $4 each and paid cash. Jan. 1 7,600 1.250 Bal. Bal Sold 6 T-shirts for $10 each, total cost of $24, Received cash. Bal. Purchased 50 T-shirts on account at $5 each. Terms 2/10, n/30. Paid the supplier for the T-shirts purchased on January 3, less discount. 7 Office Supplies Utilities Payable Wages Expense 8 Realized 4 T-shirts from the January 1 order were printed wrong and retuned them for a cash refund. 10 Sold 40 T-shirts on account for $10 each, total cost of $200. Terms 3/15, n/45. 165 295 Bal. Bal Bal. Utilities Expense 12 Received payment for the T-shirts sold on account on January 10, less discount. Prepaid Rent Telephone Payable 14 Purchased 100 T-shirts on account at $4 each. Terms 4/15, n/30. 2,000 Bal. 325 Bal. Bal. Canyon Company called the supplier from the January 14 purchase and told them that some T-shirts were the wrong color. The supplier offered a $50 purchase allowance. Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount 18 the Telephone Expense Land Unearned Revenue 20 85,000 21 Sold 60 T-shirts on account for $10 each, total cost of $220. Terms 2/20, n/30. 350 Bal Bal Bal. 23 Received a payment on account for the T-shirts sold on January 21, less discount. 25 Purchased 320 T-shirts on account at $5 each. Terms 2/10, n/30, FOB shipping point. Building Interest Payable Supplies Expense 27 Paid freight associated with the January 25 purchase, $48. 35,000 0 Bal. Bal. Bal. 29 Paid for the January 25 purchase, less discount. 30 Sold 275 T-shirts on account for $10 each, total cost of $1,300. Terms 2/10, n/30. The following T-accounts in the ledger have been opened for you using the post-closing balances from December 31, 2018: Cash, Accounts Receivable, Merchandise Inventory, Estimated Returns Inventory, Office Supplies, Prepaid Rent, Land, Building, Accumulated Depreciation-Building, Canoes, Accumulated Depreciation-Canoes, Accounts Payable, Utilities Payable, Telephone Payable, Wages Payable, Refunds Payable, Interest Payable, Unearned Revenue, Notes Payable, Common Stock, Retained Earnings, Income Summary, Sales Revenue, Canoe Rental Revenue, Cost of Goods Sold, Rent Expense, Wages Expense, Utilities Expense, Telephone Expense, Supplies Expense, Depreciation Expense-Building, Depreciation Expense Canoes, Interest Expense