CP #1 Problem 2: Comp. Prob. Ch 8-10 Background: Top Quality Appliance Long Beach has just purchased a franchise from Top Quality Appliance (TQA). TQA is a manufacturer of kitchen appliances. TQA markets its products via retail stores that are operated as franchises. As a TQA franchise, Top Quality Appliance Long Beach will receive many benefits, including having the exclusive rights to sell TQA brand appliances in Long Beach. In exchange for these benefits, Top Quality Appliance Long Beach will pay an annual franchise fee to TOA based on a percentage of sales. The annual franchise fee is a separate cost and in addition to the purchase of the franchise. Top Quality Appliances Long Beach entered into all transactions listed in the Transactions section below during 2018, its first year of operations. Transactions: Assignment: PREVIOUS NEXT ? 1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction. 2) Click the Reports tab and review the results of recording these transactions on the General Ledger. 3) Under the Reports tab, review the Trial Balance generated as a result of recording these transactions. 4) Using the General Journal tab, click Add Transaction to journalize 01/01/2018 Received $500,000 cash from owner, T. Baker, in exchange for capital. Opened a new checking account at Long Beach National Bank and deposited the cash received from the owner. 01/01/2018 Paid $50,000 cash for the TQA franchise. 01/01/2018 Paid $200,000 cash and issued a $400,000, 10 year 3% notes payable for land with an existing building. An independent appraiser valued the land and building at $100,000 and $500,000, respectively. BUSINESS REPORTS SAVE WORK RESET RESULTS SUBMIT WORK January 1, 2018 December 31, 2018 > COMPANY INFORMATION CHART OF ACCOUNTS GENERAL JOURNAL Date No transactions in Journal Accounts ADO TRANSACTION EDIT CHECKED TRANSACTION DELETE CRECHED TRANSACTIONS Debit Credit