Heines Clocks is a retailer of wall, mantle, and grandfather clocks and is located in the Empire Mall in Sioux Falls, South Dakota. Assume that a grandfather clock was sold for $13,000 cash plus 5 percent sales tax. The clock had originally cost Heines $9,000. Assume Heines uses a perpetual inventory system.

1) Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.)

ASSET

LIABILITIES

STOCKHOLDERS EQUITY

2) Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a) Record the sales revenue of $13,000 plus 5 percent sales tax.

b) Record the cost of goods sold of $9,000.

3) To expand operations, Aragon Consulting issued 1,350 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share.

a) Indicating the account, amount, and direction of the effect for the stock issuance for the following transaction:(Enter any decreases to account balances with a minus sign.)

Asset

Liabilities

Stockholders Equity

b) indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2 for this transaction. (Enter any decreases to account balances with a minus sign.)

Assets

Liabilities

Stockholders Equity