Journal Entries Needed

Sales tax: 8%( applied to the requried transactions)

June 17 On March 20 of this year, Granite Bay Jet Ski, Inc., borrowed $12,000 cash by issuing a 90-day, 11.0%, note payable. The proceeds of the note were received and deposited in the Cash account. This note is due tomorrow and is paid in full (including 90-day interest) with check number 31226. Use a 360-day year when computing interest. At the invoice prompt enter NTPAY for note payable.

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June 18 Sold on account, to the Sierra Jet Set, two Water Dancer personal watercraft and a Starlight Trailer (sales invoice number G4018). The items, with the net cost price of each shown below, were sold at a retail selling price of net cost plus 25%. Remember to include the sales tax.

Merchandise listed on the sales invoice:

Item Quantity Net Cost Per Unit

Water Dancer Rocket 2 $7425.00

Starlight Trailer 1 $891.00

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June 19 Received a check for $1,200 from the Shasta Skimmers as payment for six months rent (July-December) on their club's storage space. The sales invoice for this transaction is G4019.

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June 20 Received a check for $417.33 from the Royal Bar Jetters as payment in full of their May 21 invoice. The invoice number for this transaction is G3971.

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June 20 Repaired a damaged steering mechanism for customer Darren O'Malley and also installed a new Hickster Pipe. Mr. O'Malley was billed for 3.25 hours of labor, accessories totaling $430, plus sales tax (sales invoice number G4020). He paid with a Western National credit card (company credit card).

Merchandise listed on the sales invoice:

Item Quantity Net Cost Per Unit

Hickster Pipe 1 $215.00

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June 21 Traded the old company truck for a new truck issuing check number 31227 to complete the transaction. The old used truck cost $4,800 and on March 31, the end of the quarter, had depreciated $3,180 Straight-line depreciation on the old truck is $80 per month (DEPRE). The new truck listed for $18,950 (invoice W3571) and Wumbaugh Auto Sales allowed a $2,825 trade-in allowance on the purchase of the new vehicle. This trade has no commercial and no gain or loss will be recognized on this transaction. An additional check (number 31228) for $510 was issued to the Department of Motor Vehicles (invoice DMV06) for the vehicle license fees. Three entries are required for this trade.

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June 21 Issued check 31229 and purchased additional store fixtures for better display and security of merchandise. The equipment lists for $7,200 with a special trade discount of 35% and sales tax on the net amount. The invoice number for this purchase is 79002.

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June 21 Purchased accessories with a total net cost of $635.00 from Larson Sports Equipment. The merchandise was delivered by Larson (invoice number M3093, terms net 30.)

Merchandise listed on the sales invoice:

Item Quantity Net Cost Per Unit

Custom Ride Plate 1 $52.00

Custom Decal Kit 1 $11.50

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June 22 Purchased additional store and shop supplies on account from Andregg Supply (invoice A5049). Andregg extends net 30 credit terms and the balance due on the invoice totals $635.40 (supplies and sales tax).

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June 22 Sold two Kawasaki Ultra 150 Personal Watercraft and two Starlight Quad trailers to Roy and Kristin Cobb. Sales invoice number G4021 shows the total out-the-door sales price (including tax) to be $23,922.00. Roy and Kristin paid $13,922 as a down payment and Granite Bay Jet Ski accepted a short-term, $10,000, 8.5%, 60-day note receivable for the balance. To calculate the amount of the sale (before sales tax) divide the total sales price by 1.08.

Merchandise listed on the sales invoice:

Item Quantity Net Cost Per Unit

Jet Ski Ultra150 2 $6,880.00

Starlight Quad 2 $1,980.00

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June 23 Purchased accessories on account from Clear Water, Incorporated, (invoice C5217). The accessories list for $540.00, are recorded net, and credit terms of 2/10, n/30 are extended by Clear Water, Incorporated. No freight charges will be incurred for this shipment.

Merchandise listed on the sales invoice:

Item Quantity Net Cost Per Unit

Stainless IMP100 6 $88.20

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June 23 Received a certified check for $5,080 from Arlene Burnet as payment to cover her NSF check. On June 15, the check for $5,000 plus an $80 handling fee was charged back to Ms. Burnet's account. At the invoice prompt enter BADCK.

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June 23 Returned to Andregg Supply, store supplies purchased on account for a total of $38.90 on June 22 (invoice number A5049).

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June 23 Sold used shop equipment (metal lathe) for $320. The equipment was purchased at a total cost of $2,200 early in 2004. Using units of production depreciation, the accumulated depreciation account balance at the end of the first quarter (March 31) totals $1,830 Depreciation is recorded at the rate of $1.00 for each hour of operation. Through June 23 of this quarter, an additional 260 hours of operation have accumulated on the hour meter. Two entries are required to properly record this sale. At each invoice prompt enter ASALE for asset sale.