Homework 3 Smith Jackson is starting a new fiscal year on July 1, 2018. From last year, he has $5,400 in his checking account, owes $9,000 to First State Bank for a loan he took his last year, and owes $900 in short-term liabilities. He owns land worth $60,000, machinery and equipment worth $20,000, and breeding livestock worth $18,000 that are used in the herd. For each transaction that follows, make the entry in the Journal and in the respective account in Ledger using the columnar paper attached at the end. Use only the accounts listed in the Chart of Accounts below Transaction Date # Paid $500 of principal owed to First State Bank along with $80 interest Sell 4 milking cows for $1,200 each to Reynolds Inc Purchased a plot of land for $25,000 to add to the farm. Part of the payment ($9,000) is made from existing funds and the rest will be financed with a $16,000 loan from First State Bank. Sell colt for $14,000 for cash to P. Manning Income tax owed to the IRS valued at $3,000 Income tax paid in full to the IRS Repairs and maintenance on farm equipment conducted by Smith. Purchase of equipment parts for $600. Property taxes paid on farm land, equipment, and vehicles $1,400 Sell colt for $8,000 to R. Wayne. Payment received later Partial payment of $5,000 received from R. Wayne Purchased 2 heifers for $800 each Insurance premium of $250 paid 7-10-2018 7-20-2018 8-13-2018 1 2 3 9-3-2018 10-16-2018 5 10-25-2018 4 6 11-10-2018 7 12-9-2018 8 2-1-2019 3-5-2019 10 11 3-13-2019 4-4-2019 12 CHART OF ACCOUNTS 1010 Cash (checking account) 1050 Account Receivable 1700 Breeding Cattle 1800 Land and Buildings 1810 Accumulated Depreciation 2010 Notes Payable 2050 Accounts Payable 3010 Retained Equity 4010 Colt Revenue 5050 Repair Expense 5130 Interest Expense 5150 Insurance Expense 9000 Income Tax Expense 9100 Property Tax Expense SMITH JACKSON FARMS JOURNAL SMITH JACKSON FARMS LEDGER BALANCE CREDIT DEBIT DESCRIPTION DATE OX Cheaing Balenee SMITH JACKSON FARMS LEDGER BALANCE CREDIT DEBIT DATE DESCRIPTION