Instructions:
1. Prepare journal entries for each event. (10 pts)
2. Prepare adjusting entries. (3 pts)
3. Prepare adjusted trial balance. (3 pts)

The 2013 balance sheet of the Captain Jet Inc. is attached. During 2014. the folloving events occurred. 1. OnJanary 10, sell merchandise on account to Rayms $3,600 and Fischer $8,800. Tems 2/10, n 30. Freight $100 or each sale, F.O.B. shipping point. 2. On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 1/10,ni30.Freight $120 for each sale,F.O.B. destination. 3. Receive checks, $4,000 from Longhini and $2,000 from Hall, for sales on account after discount period has lapsed 4. On January 5. OnJanuary 6. Summary daily cash sales total $15,500 15, send checks to Joosten for 9,000 less 2% cash discount, and to Maida for $11,000 less 1% cash discount. 16, issue credit of $400 to Fieber for merchandise returned. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12 8. On Febuceive payment in full from Rayms and Fischer . On March1, pay rent of $6,000 or a two-year term. 10. On April 1, sell merchandise on account to Dunlap $1,600, term 2/10, n130. Freight $80, FOB. shipping point. 11. Pay $400 cash for office supplies 12. Cash dividends totaling $800 are declared on June 13 and paid to stockholders on June 23. 13. Issue a note of $120,000 to bank(one year, annual interest rate 3%) for cash. 14. On July 5, purchase merchandise from Maida $33,000, terms 3110, ni30 5. On July 7,issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $15,000 6. On July 8, return $200 of merchandise to Maida and receive credit. 17. On August 1, sell merchandise to Lachey on account $80,000, term 1'10, n30. Freight $1,500, F.0O.B. shipping point. 18. Pay off the balance to Maida on August 4 9. On August 10, receive half of the payment from Lachey. 20. On August 14, write of($1,300 bad debt for one account. Tooket. 21. Pay utitlities expense, $10,902. s off its balance 23. On September 1, pay cash $7.500 to Farmington for merchandise purchasedlast year 24. On October 1, pay off notes payable $110,000 and associated accrued interest $6,000. of which $1,500 was shown on the balance sheet 25. Over the year,sales and office employees earned $45,500 in salaries and wages, of which $1,500 was still payable at the end of year 26. An unpaid utilities bill (December, $1,250) is due on January 10 next year Additional Information at the end of the year: I. Lepreciation epense tor the year was 4,50 2. The company estimated that it has to pay federal income tax, $3,250 3. After physically counting, the company decided that the ending inventories worth $40,146 4. Based on its historical data, the 5. Unearned revenue is decreased by $10,000 company estimated that the bad debts were about 1% of net credit sales e company expenses all of the s supplies purchased during the year 7. No insurance policy is effective during the year 8. The compan 3. The company adopts the periodic inventory system. y used the gross method to record its purchases and sales on credit. Instructions: 1. Prepare journal entriesor each event. (10 pts] 2. Prepare adjusting entries. (3 pts) 3. Prepare adjusted trial balance. 13 pts