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 $10,500 cash plus 4 percent sales tax. The clock had originally cost Heines $6,500. 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.)

Assest Liabilities Stockkholder's E

a-

b-

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.) 1-2-