Journalize the Following Transactions

January 3 Sold store equipment for $5,000. The equipment originally cost $9,000 and had a book valueof $6,300. (Given this information, you should be able to derive the accumulated depreciation on the equipment and determine the gain or loss on the sale.)

January 5 Travis personally invested $10,000 into the business.

January 10 Purchased inventory on account for $22,500. Travis Auto Parts uses a periodicsystem of inventory control.

January 15 Paid salaries owed to employees at the end of 20x1.

February 1 Sold goods on account for $15,000. Made cash sales of $10,400.

February 18 Received payment of $11,500 from customers for previous sales made on account.

March 1 Entered into a rental agreement with Pecos Real Estate Agency. Travis paid $10,800 for a 12-month lease of office space. Travis debited a temporary (nominal) account to record the transaction.

March 8 Purchased $19,000 worth of inventory on account.

March 15 Sold goods for $21,000 on account. Made cash sales of $18,800.

March 25 Credited customer accounts for $2,520 of merchandise returned.

April 1 Paid the $16,000 note and all interest accrued to date. Travis had borrowed the $16,000 on October 1, 20x1. Interest accrued on the note at a rate of 10% annually.

April 12 Received $18,200 from customers for sales made previously on account.

April 20 Paid $33,000 of the amount owed to suppliers for goods and services purchased on account.

May 9 Purchased $15,000 worth of store equipment for cash. Travis Auto Parts has a policy of taking a full year's depreciation on its equipment in the year of purchase.

May 18 Purchased inventory on account for $25,000.

May 26 Sold $24,500 worth of goods on account. Made cash sales of $14,000.

June 1 Borrowed $15,000 from the bank by issuing a 12-month note. Interest accrues on the note at the rate of 12% annually, or 1% per month. Interest is to be paid when the note is due next year.

June 30 Incurred and paid the following expenses: salaries, $13,000; utilities, $1,800; and advertising, $2,100.

July 7 Received payment of $23,600 from customers for previous sales made on account.

July 22 Purchased supplies on account for $7,200. Travis debited a permanent (real) account to record the transaction.

August 15 Purchased inventory on account for $17,000.

August 31 The prior insurance policy on Travis's operating assets expired on this date; prepare a journal entry to record this event. Travis replaced this policy with a 12-month policy by paying $8,400. Travis debited a permanent account to record the new policy.

September 4 Sold $16,500 worth of goods to customers on account. Made cash sales of $11,000.

September 20 Credited customer accounts for $1,200 worth of merchandise returned.

October 8 Received $9,500 advance payment for products to be shipped to customers by year-end. Travis recognized this cash receipt by crediting a temporary account.

October 19 Paid $40,000 of the amount owed to suppliers for goods and services purchased on account.

November 16 Sold goods for $18,700 to customers on account.

December 4 Received payment of $27,000 for sales made on account.

December 18 Travis withdrew $6,000 from the business for personal use. To record this transaction, debit a Drawing account and credit Cash. The Drawing account is a temporary account which will be closed out at the end of the year to the Capital account.

December 31 Incurred and paid the following expenses: salaries, $15,500; utilities, $2,300; and advertising, $2,500.