HINT: Before booking an entry, remember to evaluate the substance of each transaction$/$event$.$ Do

accounting standards require the event or transaction to be booked into your company's accounting

records? NOTE: All interest rates included in the transaction list are stated at an anual rate.

January

On January $1^{st},$ The Board of Directors issued $240,000$ additional shares $($par of $$0\mathrm{.}75)$ to raise

capital for the New Year. Assume no change in price from December $31,2021.$

Purchased new office equipment for $$95,000$ with cash from California Furniture on January $1,$

The equipment will be depreciated over a ten$-$year period on a straight$-$line basis. The office

equipment has an estimated salvage value of $$4,000.$

$[$Adjusting Entry Required$]$

On January $1^{st},$ a $5-$year, $$140,000$ long$-$term note payable was taken from a local bank. The

company plans on making a payment on this note at the end of the year.

On January ${22}^{nd}$ the company purchased $8,500$ units of inventory $($garden gnomes$)$ at a cost of

$$77$ per unit. The company paid $45\%$ in cash and purchased the remainder on account.

On January ${25}^{th}$ the company paid $$270,000$ cash toward accounts payable.

Using this data, create T$-$Charts