Davis Uniform Corporation operates a store that sells uniforms. The following are the transactions that occurred during the first quarter of operations- Jan. 1 to Mar. 31, 2017.

Jan.     1   Davis issues 20,000 shares of $1 par value common stock with an issuing price of $10 per share.

Jan.     2   Purchased furniture and fixtures from Acme Furniture for $14,400 cash.

Jan.     4   Purchased $1,600 of office supplies for cash.

Jan.   15   Paid $36,000 in advance for one year’s rent on the store building. The rent begins with  Jan 15. The company counts January for half a month.

Jan.   31   Paid salaries to employees for the first month, $3,600.

Feb.    1    Purchased $62,400 of uniforms inventory on account from the Birdwell Uniforms Manufacturing Company.

Feb.    1    Borrowed $66,000 from a local bank and signed two notes. The first note of  $21,000 requires payment of principal in six months with annual interest rate at 4%. The second note of $45,000 requires the payment of principal in two years and annual interest payment with annual interest rate at 5%.

Feb.    6    Sold uniforms on account to St. Jude’s School for $7,200. Cost of the uniforms sold is $4,800.

Feb.    9    Paid Birdwell Uniforms Manufacturing Company $50,000 for the purchase on Feb. 1.

Feb. 20    Sold uniforms to a chemical factory for $79,200 cash. Cost of the uniforms sold is  $47,520.

Feb. 23    Purchased $10,000 of uniforms inventory on account from the Birdwell Uniforms Manufacturing Company.

Feb. 28    Paid salaries to employees for the month of February, $4,200.

Mar.   1   Sold uniforms to the football team of Robert Lee High School, and accepted a $12,000,  three-month, note receivable with annual interest rate at 5%. Cost of the uniforms

                 sold is $9,600.

Mar.   1   Subleased a portion of the building to a jewelry store. Received $3,000 in advance for three months’ rent beginning on Mar. 1.

Mar.   3   Some uniforms were returned by the chemical factory which made a purchase on Feb. 20. The selling price and cost of the returned uniforms is $7,200 and 4,320,  respectively. Cash of $7,200 is refunded to the customer.

Mar. 23   Paid Birdwell Uniforms Manufacturing Company $14,400 for the purchases in Feb.

Mar. 25   Received $5,800 cash from St. Jude’s School.

Mar. 30   The corporation announced and paid its shareholders cash dividends of $2,500.

Requirements:

1. Analyze the transactions and record journal entries in General Journal.