1. Identify, analyze, record, and post transactions (THERE ARE 4 PARTS TO THIS QUESTION): King Toots music store sells musical instruments and other related merchandise to customers. The following is a list of King Toots account balances at the beginning of December (i.e. as of December 1^st, 2017): Cash: $18,750; Accounts Receivable (A/R): $11,980; Inventory: $20,800; Equipment: $34,400; Accounts Payable (A/P): $13,930; Notes Payable (N/P): $55,000; Common Stock: $17,000. Assume all other accounts had a balance of $0 as of 12/1/17. The accountant for King Toots observed the following transactions which occurred during December 2017.
   1. 12/3/17: Issued 400 shares of common stock for $10 per share.
   2. 12/5/17: Sold merchandise inventory, which originally cost $900, for $2,200 to customers. Of the $2,200 in sales, $500 worth was purchased by customers using cash. The remaining $1,700 was purchased by customers on account. (HINT: dont forget there will be two parts to record hereone part to record the sales revenue and one part to record the cost of the merchandise inventory sold).
   3. 12/8/17: Paid $4,250 in cash to creditors on outstanding accounts payable.
   4. 12/20/17: Received $3,080 in cash from customers as payment on their accounts receivable.
   5. 12/30/17: Paid $1,100 in cash for Decembers Rent.
   6. 12/30/17: Paid $120 in cash dividends to stockholders.

Part 1 Account Identification and transaction analysis: Prepare a transaction worksheet summarizing all of the December transactions for King Toots. I have provided a framework for you and completed transaction a. for you as an example. After recording all transactions, be sure to calculate ending balances as of 12/31/17 and enter them in the last row of the worksheet. HINT: Make sure the accounting equation remains in balance after entering each transaction!

Part 2 Record transactions using Journal Entries: Record all of the above transactions using journal entries. Assume King Toots uses the following accounts: Cash, A/R, Inventory, Equipment, A/P, Notes Payable, Common Stock, Sales Revenue, Cost of Goods Sold (COGS), Rent Expense, and Dividends. I have completed transaction a. for you as an example. Be sure to include the date and a brief description of the entry.

1. 12/3/17 DEBIT CREDIT

Cash $4,000

Common Stock $4,000

To record issuance of 400 shares common stock, $10 par value.

Part 3 Post transactions to T-Accounts: First, make sure to enter beginning balances (as I have done for Cash and Common Stock) in the T-accounts below. If the beginning balance is $0, enter $0. Then, post all of the above transactions to the proper T-Accounts. I have completed transaction a. (occurring on 12/3) for you as an example. After all entries have been posted, update all the T-accounts and calculate the ending balances for each T-account as of December 31, 2017. (HINT: Remember the accounting equation! Double check your work: the total of all ending Asset account balances should = total of all ending Liability + total of all ending SHE account balances).

PART 4 Prepare an unadjusted trial balance:

Prepare an unadjusted trial balance for King Toots as of December 31, 2017 with the list of accounts in the following order: assets, liabilities, common stock, revenues, expenses, and dividends.

Cash Equip... Assets Accts. Inventory Rec. (A/R). $11,980 $20,800 Liabilitiese Accts Notes. Payable Payable. Stockholders' Equity Common Retained Earnings. Stock | Rev... (Exp.). (Div.). (A/P). $34,400. $13,930. $55,000 + $0 $0. $17,000 +$4,000. 12/1 $18,750. . +$4,000 b.1. .. b.2.1. f. 12/31 A/P Cash 12/1) $18,750 12/3) $4,000 Common Stock $17,000_{12/12 $4,000 (12/3+ t t t Notes payable Sales Revenue Inventory Rent Expenser Equipment Cost of Goods Solde Dividends