Date	Account and Explanation	DR	CR
1-Nov	Cash	16,000
	Common Stock		16,000
	Issued common stock
2-Nov	Prepaid Rent	1,200
	Cash		1,200
	Paid rent in advance
3-Nov	Canoes	4,800
	Accounts Payable		4,800
	Purchased canoes on account
4-Nov	Office Supplies	750
	Accounts Payable		750
	Purchased office supplies on account
7-Nov	Cash	1,400
	Canoes Rental Revenue		1,400
	Received canoes rental income
15-Nov	Dividends	50
	Cash		50
	Paid Divdends
16-Nov	Utilities Expense	150
	Utilities Payable		150
	Accrued utility liability
20-Nov	Accounts Payable	175
	Telephone Payable		175
	Accrued telephone liability
22-Nov	Accounts Receivable	3,000
	Canoes Rental Revenue		3,000
	Earned canoes rental revenue
26-Nov	Accounts Payable	1,000
	Cash		1,000
	Paid cash on account
28-Nov	Cash	750
	Accounts Receivable		750
	Paid cash on account
1-Dec	Land	85,000
	Building	35,000
	Common Stock		120,000
	Received land and building in exchange of common stock
1-Dec	Prepaid Rent	3,000
	Cash		3,000
	Paid rent in advnace
2-Dec	Canoes	7,200
	Notes Payable		7,200
	Purchased canoes with notes payble
4-Dec	Office Supplies	500
	Accounts Payable		500
	Purchased office supplies on account
9-Dec	Cash	4,500
	Canoe Rental Revenue		4,500
	Received canoes rental income
16-Dec	Cash	750
	Unearned Revenue		750
	Collected cash for future services
18-Dec	Utilities Payable	150
	Telephone Payable	175
	Cash		325
	Paid utility and telephone liability
19-Dec	Accounts Payable	2,000
	Cash		2,000
	Paid accounts payable
20-Dec	Telephone Expense	325
	Utilities Expense	295
	Telephone Payable		325
	Utilities Payable		295
	Accrued utilities and telephone expense
30-Dec	Wages Expense	1,800
	Cash		1,800
	Paid wages expense

Canyon Canoe Company
Balance Sheet
December 31, 2018
Assets				Liabilities
Cash		12,125		Accounts Payable		3,050
Accounts Receivable		5,750		Unearned Revenue		750
Office Supplies		1,250		Utilities Payable		295
Prepaid Rent		4,200		Telephone Payable		325
Canoes		12,000		Notes Payable		7,200
Land		85,000		Total Liabilities		11,620
Building		35,000
				Stockholder's Equity
				Common Stock		136,000
				Retained Earnings		7,705
Total Assets		155,325		Total Stockholder's Equity		143,705
				Total Liabilities and Stockholder's Equity		155,325

Lung Problem Part 1 P5-49 Journalizing and posting purchase and sale transactions This problem continues the Canyon Cano Company situation from Chapter 4. At the beginning of the new year, Canyon Canoe Company decided to a T-shirts with its logo printed on them. Canyon Canoe Company uses the perpetual inventory system to account for the inventory. During January 2019, Canyon Canoe Company completed the following merchandising transactions Jan. 1 Purchased 10 T-shirts at $4 each and paid cash. 2 Sold 6 Tshirts for $10 each, total cost of $24. Received cash. 3 Purchased 50 T-shirts on account at $5 each. Terms 2/10, n/30. 7 Paid the supplier for the Tshirts purchased on January 3, less discount. 8 Realized 4 Tshirts from the January 1 order were printed wrong and returned them for a cash refund. 10 Sold 40 Tshirts on account for $10 each, total cost of $200. Terms 315, n/45 12 Received payment for the T-shirts sold on account on January 10, less discount 14 Purchased 100 T-shirts on account at $4 each. Terms 415, n/30. 18 Canyon Company called the supplier from the January 14 purchase and told them that some of the Tshirts were the wrong color. The supplier offered a $50 purchase . allowance 20 Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount 21 Sold 60 T-shirts on account for $10 each, total cost of $220. Terms 220, n/30. 23 Received a payment on account for the T-shirts sold on January 21, less discount 25 Purchased 320 Tshirts on account at $5 each. Terms 210, n/30, FOB shipping point 27 Paid freight associated with the January 25 purchase, S48. 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, 31 Received payment for the Tshirts sold on January 30, . less discount Requirements 1. Open the following T-accounts in the ledger, using the post-closing balances from Chapter 4Cash, : Accounts Receivable, Merchandise Inventory, Estimated Returns Inventor, Office Supplies, Prepaid Rentand, BuildingAccumulated deprecial tion Building Canoes, Accumulated Depreciation Canoes, Accounts Payable Jilities Payable, Telephone Payable, Wages Payable, Refunds Payable, Interest Play able, Unearned Revenue, Notes payableCommon Stock, Retained Summary, Sales RevenueCanoe Rental Revenue, Cost of Goods Sold, Rent Expense, , earning Income Wages Expense, Utilities Expense, Telephone Espense, Supplies Expenses, Deprecia