Date	Transaction
Jan. 1	Issued 20,000 common shares to Gerry Mercer in exchange for $2,000,000 cash.
Mar. 1	Purchased 10 vintage car care kits for $18,000 cash. Vintage Car Storage Limited uses the first-in-first-out method of inventory valuation and uses the perpetual method.
Apr. 1	Purchased land and building for $1,000,000 cash and signed a note payable for $1,000,000. A real estate appraisal specialist valued the land at $1,260,000 and the building at $840,000. The note payable bears interest at the rate of 8% annually and is repayable with interest on March 31, 2023. The building has an expected life of 40 years with a salvage value of $200,000. The building is to be depreciated using the double declining balance method.
May 1	Paid $60,000 cash for insurance covering the period May 1, 2022 to April 30, 2023.
Aug. 1	Signed a contract with The Burlington Vintage Car Club to provide car storage services to its members. Under the terms of the contract Vintage Car Storage Limited will store up to twelve vintage cars for the period September 1, 2022 to August 31, 2023. Received full payment of $240,000 in cash for the contract on signing.
Sept. 1	Purchased 10 vintage car care kits for $20,000 cash.
Dec. 1	Sold 15 vintage car care kits to members of the Burlington Vintage Car Club on credit for $80,000. Vintage Car Storage Limited estimates that there is a 5% chance these customers will not pay.
Dec. 31	Paid operating expenses of $40,000 for the year in cash.

Prepare journal entries to record the above transactions and any necessary year end adjusting entries. Ignore income and sales taxes.