In Q2, prepare T-accounts based on Q1. Make sure that you Enter the date first, then place the $ amount on the correct side (debit or credit) If you have any beginning balances (those are from sheet BS0), you need to transfer those balances to the first row. Calculate an ending balance for each account.

DECEMBER 31, 2017 Current Assets Cash Accounts Receivable Inventories Prepaid inventory Prepaid insurance 50,000 0 0 0 Total Current Assets 50,000 Non-Current Assets Land Buildings 0 0 Less: Accumulated Depreciation Net value of Buildings Other assets Total Assets 50,000 Current Liabilities Notes Payable Accounts Payable Unearned Revenues Income Taxes Payable Interest Payable 0 0 Total Current Liabilities Non-Current Liabilities Notes payable 0 Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Paid-in-capital Common Stock Retained Earnings 50,000 0 0 50,000 50,000 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Transaction 1/1/2018. Sell 150,000 shares of PC's common stock ($1 par value) for $10 per share cash Cr. 1/1/2018 Dr Correct 1,500,000 Correct Common Stock Correct Correct 150000 Correct 1,350,000 Correct Additional Paid-in Cap Notes: You can leave the notes em Transaction 2: 1/3/2018. Borrow $1 million loan from the bank. Interest on this 10-year loan is 5% per annum. 1/3/2018 Cash Cr: Dr. Correct 1,000,000 Correct Notes payable Correct 1,000,000 Correct Notes: Transaction 3: 1/5/2018. Pay $1.5 million for land (1 million) and building (0.5 million). Set up a 20-year straight-line depreciation schedule for building The estimated residual value of the building is 0.1 milion. 1/5/2018 Dr Land Correct Correct 1,000,000 500,000 Correct Correct Building Cr: Cash Correct 1,500,000 Correct Notes: Transaction 4. 1/6 2018. Purchase 1-year liability insurance for $2,100, effective from 1/1/2018 Prepaid Insurance Cr: 1/6/2018 Dr. Correct 2,100 Correct Cash Correct 2,100 Correct Notes: Transaction 5. 1/7/2018. Purchase $250,000 worth of inventory. Pay 2 down now 1/7/2018 Dr. Correct 250,000 Correct Inventory Cr: Cash Correct Correct 125,000 Correct 125,000 Correct Accounts Payable Transaction 6. 1/12/2018. Pay the remaining $125,000 due in TS 1/12/2018 Accounts Pay Correct 125,000 Correct Cr: Cash Correct 125,000 Correct Notes: Transaction 7. 1/31/2018. Total cash sales during the month is $150,000 Cash Cr: Correct Sales Revenue 1/31/2018 Dr. 150,000 Correct Correct 150,000 Correct Notes: Transaction 8. 2/2/2018. Receive utility bill for January, totaling $1,850 2/2/2018 Dr Utilities Expense Cr: Correct Utilities Payable 1,850 Correct Correct 1,850 Correct Notes: Transaction 9. 2/6/2018. Take an order from customer for $24,000 of pet food. No journal entry recorded, since the order hasn't been shipped yet. Notes: Transaction 10. 2/7/2018. Pay January utility bill. 2/7/2018 Dr Utilities Payable Correct 1,850 Correct Cr Cash Correct 1,850 Correct Notes: Transaction 11. 2/8/2018. Ship and invoice customer for $24,000 of pet food ordered in T9 above. Shipping fee is on customer Accounts Receivable Correct Sales Revenue 2/8/2018 Dr. 24,000 Correct Cr. Correct 24,000 Correct Notes: Transaction 12. 2/12/2018. Receive payment of $24,000 for shipment made in T11 2/12/2018 Dr: Notes: Cash Cr. Correct ccounts receivable 24,000 Correct Correct 24,000 Correct Transaction 13. 2/15/2018. Pay salespersons' first month wages of $13,500 (three persons, $150 per day, 30 days) Salespersons started their jobs on 1/16 2018 2/15/2018 Dr Salaries expense Cr Correct 13,500 Correct Cash Correct 13,500 Correct Notes: Transaction 14. 2/28/2018. Receive and ship an order from customer for $36,000. Customer promises to pay the amount within 10 days. Shipping fee is paid by customer 2/28/2018 Accounts Receivable Cr Correct Sales Revenue Dr: 36,000 Correct Correct 36,000 Correct Notes: Transaction 15. 2/28/2018. Total cash sales during the month is $168,000 228/2018 Dr: Cash Cr Correct Sales Revenue 168,000 Correct Correct 168,000 Correct Transaction 16. 3/3/2018. Receive and pay February utility bill of $1,900 /3/2018 Dr. tilities expense Correct 1,900 Correct Cr. Cash Correct 1,900 Correct Transaction 17. 3/12/2018. Declare a $0.3 per share dividend and pay to common shareholders (There are a total of 200,000 shares outstanding) 3/12/2018 Dr Cash dividend Cr Correct 60.,000 Correct Cash Correct 60,000 Correct Transaction 18. Pay salespersons' first month wages of S12,600 (three persons, $150 per day, 28 days) 3/15/2018 Dr Salaries Expense Cr. Correct 12,600 Correct Cash Correct 12,600 Correct Transaction 19. 3/31/2018. Total cash sales during the month is $184,000. There is no credit sale during March. 3/31/2018 Dr Cash Cr. Correct 184,000 Correct Sales revenue Correct 184,000 Correct