Inventory:

Laptop: LT-1234 1@$102.00 each on 11/7/2017

Desktop: DT-214 1@$79.00 each on 11/7/2017; 1@$71.00 each on 11/16/2017

Monitor: MON-5478 1@52.00 each on 11/7/2017; 2@$57.00 each on 11/11/2017; 1@$53.00 each on 11/16/2017

Printer: PRN-1255 2@$31.34 each on 11/7/2017

Server: 1@$427.00 each on 11/11/2017

Prepaid Insurance:

12-month liability insurance policy for $924.00 is purchased from Scorn Insurance on 11/1/2017

Accounts Receivable:

Fisher: 11/9/2017 - $497.09

Systems, Inc.: 11/17/2017 - $5,436.85

Fixed Assets: Sum-of-the-Years Digits Method

Computer Repair Equipment - $7,743.22 purchased on 11/3/2017; salvage value - $750.00; 7-year life; accumulated depreciation - $145.69

Office Furniture - 1,101.01 purchased on 11/14/2017; salvage value - $300.00; 3-year life; accumulated depreciation - $33.38

Accounts Payable:

Scorn, Inc.: 11/5/2017 - $462.00

Computer Warehouse: 11/7/2017 - $578.68

Rax Electric: 11/22/2017 - $175.22

Office Woes: 11/14/2017 - $1,101.01

Computers R Us: 11/16/2017 - $372.00

Loan:

$21,000.00 loan on 11/1/2017; payment due on 27th of each month; 7.7% annual interest for 7 years

You have been hired to by Cardinal Computer and Repair, Inc. to maintain its accounting books

This is a sub chapter "S" corporation having only one shareowner

The company uses full accrual accounting method conforming to U.S. GAAP

12/1/2017

a

The business buys $5,555.00 worth of bonds with a face value of 5.00%;

the market rate at the time of purchase is 4.50%; the interest is

paid once a quarter, so the next interest payment will be made on 2/28/2018;

the bond will mature in 4 years

Both the fiscal and calendar year ends on December 31st.

12/1/2017

b

A supplemental 3-month insurance policy from USAA is purchased with cash

for $162.00

12/2/2017

c

1 DT-214, 1 MON-5478 and 1 PRN-1255 are taken out of inventory to be

used for business purposes. Perpetual FIFO method is used to determine cost of goods sold

12/2/2017

d

The following inventory is purchased on account from Computers R Us:

Qty

Item

Cost

2

LT-1234

$107.00

each

2

DT-214

$ 67.00

each

2

MON-5478

$ 49.00

each

1

SVR-5699

$409.00

each

2

PRN-1255

$ 38.44

each

12/3/2017

e

A computer installation is made on account to Systems, Inc. for $1,950.00

and 1 SVR-5699 is sold for $2,200.00; 2 DT-214 for 552.00 each; 2 MON-5478

for 107.00 each; 2 PRN for $225.00; sales tax rate is 8.25% and

is charged on the sale of tangible items