Chegg Home Study tools v My courses v My books My folder 1. On 10/1/92, Uncle Joe invested $10,000 in his new business. Consequently, he deposited $10,000 of his own money into the firm's checking account. Career 2. On 10/1/92, Uncle Joe agreed to purchase all the equipment and fixtures of Deals on Wheels for $25,000. He paid the owner $5,000 and agreed to pay the remaining $20,000 in equal monthly payments at the end of each month for the next five years. They agreed that this amount would carry an interest rate of 3% per annum. 3. On 10/6/92, Uncle Joe purchased three bikes for $300 each. He wrote a check to his bicycle supplier to pay for the purchase. (NOTE: Uncle Joe had decided to use the Perpetual Inventory System for tracking purchases and sales of inventory and the FIFO method for valuing inventory.) 4. On 10/7/92, Uncle Joe purchased $500 of supplies for his business. He paid cash. 5. On 10/8/92, Uncle Joe paid $300 for a newspaper advertisement by writing a check. 6. On 10/10/92, Uncle Joe hired a helper to assist in running the business at an agreed-upon monthly salary of $900. 7. On 10/22/92, Uncle Joe purchased five additional bikes from his supplier. This time, the supplier allowed him to buy on credit, but indicated he would have to pay for these bikes during the following month. The supplier also increased his price and charged Uncle Joe $350 per bike. 8. On 10/31/92, Uncle Joe made the first payment (principal and interest) to the former owner of Deals on Wheels, as was noted in the check register but with no amount specified. 9. On 10/31/92, Uncle Joe paid his helper $600 in wages with cash. 10. During October, the firm's first month of operation, Uncle Joe sold three bikes for $600 each. One was sold for cash. Two were sold to the local high school athletic department. A note from the athletic director indicated it would take the high school some time to process the purchase, with payment expected in the first two weeks of November. In addition to the sales price of each bike, Uncle Joe collected a 5% sales tax from the non-exempt customer. (The high school was exempt from sales tax.) 1a