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Dunderhead Helmets (DH) Zach and Sara have started a new company a store that sells helmets. DH sells bike helmets, snowboard helmets, skateboard helmets, & motorcycle helmets. DH sells helmets for anything you want to do and in any size of head. The following are the transactions for the first year Each owner purchased 2 the firm's common stock for S15,000 each On November 3, DH purchased a one-year liability insurance policy for $1,440 DH paid S6,120 for computer equipment, software and a phone system on November 2 The equipment is expected to last 3 years with no residual value 1. 2. 3. 4. On November 1, DH paid for $12,000 for 6 months' rent. Rent is typically $2,200 a month. However, since DH paid all rent in advance, the landlord charged them $2,000 month. On November 1, DH borrowed $24,000 from a credit union. The loan has a term of 2 year at 12% interest. On the first anniversary date, one year of interest is due and one-half of the loan is due. On the second anniversary date, a second year of interest is due and the remaining principal is due On November 4, ordered 1,000 helmets at an average cost of $30 each 5. 6. 7. On November 15, DH received 600 helmets ordered. Payment is due 15 days after receipt. 8. On November 20, DH received the other 400 helmets ordered. Payment is due in 15 days 9. On November 25, DH ran an open house for Peewee Football. Players came in and picked out a helmet with no charge. DH bills Peewee Football $40 for each helmet. Two-hundred total helmets sold to Peewee Footballers. Payment is due on December 15 10. On November 27, DH paid S28,000 for the 1,000 helmets ordered above. 11.On November 28, DH received S3,000 and signed a contract with a local charity to provide helmets to disadvantaged youth. DH will supply helmets at the $30 cost. About 100 youth will come into the store over the next 3 months to pick out a helmet at no charge to them 12. On December 5, DH received a bill for utilities if S1,000. Payment is due January 1. 13. On December 17, DH received a $7,000 check from PeeWee Football. A hand written note in the envelope indicated the organization was short on cash "right now", but promised the remaining payment "early next year." 14. Cash sales in November & December totaled 400 helmets. Average sales price is S$45 cach 15. On December 29, DH paid a $200 cash dividend to each shareholder 16. On December 30, Sara sold half her shares in DH to her twin sister Meg for $20,000. 17. As of December 31, 40 youth had been fitted with bike helmets under the charity program Dunderhead Helmets (DH) Zach and Sara have started a new company a store that sells helmets. DH sells bike helmets, snowboard helmets, skateboard helmets, & motorcycle helmets. DH sells helmets for anything you want to do and in any size of head. The following are the transactions for the first year Each owner purchased 2 the firm's common stock for S15,000 each On November 3, DH purchased a one-year liability insurance policy for $1,440 DH paid S6,120 for computer equipment, software and a phone system on November 2 The equipment is expected to last 3 years with no residual value 1. 2. 3. 4. On November 1, DH paid for $12,000 for 6 months' rent. Rent is typically $2,200 a month. However, since DH paid all rent in advance, the landlord charged them $2,000 month. On November 1, DH borrowed $24,000 from a credit union. The loan has a term of 2 year at 12% interest. On the first anniversary date, one year of interest is due and one-half of the loan is due. On the second anniversary date, a second year of interest is due and the remaining principal is due On November 4, ordered 1,000 helmets at an average cost of $30 each 5. 6. 7. On November 15, DH received 600 helmets ordered. Payment is due 15 days after receipt. 8. On November 20, DH received the other 400 helmets ordered. Payment is due in 15 days 9. On November 25, DH ran an open house for Peewee Football. Players came in and picked out a helmet with no charge. DH bills Peewee Football $40 for each helmet. Two-hundred total helmets sold to Peewee Footballers. Payment is due on December 15 10. On November 27, DH paid S28,000 for the 1,000 helmets ordered above. 11.On November 28, DH received S3,000 and signed a contract with a local charity to provide helmets to disadvantaged youth. DH will supply helmets at the $30 cost. About 100 youth will come into the store over the next 3 months to pick out a helmet at no charge to them 12. On December 5, DH received a bill for utilities if S1,000. Payment is due January 1. 13. On December 17, DH received a $7,000 check from PeeWee Football. A hand written note in the envelope indicated the organization was short on cash "right now", but promised the remaining payment "early next year." 14. Cash sales in November & December totaled 400 helmets. Average sales price is S$45 cach 15. On December 29, DH paid a $200 cash dividend to each shareholder 16. On December 30, Sara sold half her shares in DH to her twin sister Meg for $20,000. 17. As of December 31, 40 youth had been fitted with bike helmets under the charity program