Journalize The Transactions
On May 1, Crazy Carl decided to buy the land next to his business, He paid $10, 895 cash for the land. On May 1, Crazy Carl bought some new canoes from Bill's Boat Barn. Last month he sold all of his canoes because they were old and dirty. He purchased a total of 33 canoes for $45, 444. He paid $9, 999 in cash and put the remaining balance on account. All balances on account must be fully paid within 9 month. The canoes have an expected life of 7 years, a salvage value of $4, 200, and will be depreciated using the straight-line method. On May 3, Crazy Carl rakes in the revenues!! Twenty-seven people decided to rent those new canoes. Carl charges his clients $11.25 an hour to rent the canoes. A total of 36 rental recorded on this day (16 hours paid in cash, 20 hours put on client accounts). On May 7, Crazy Carl realized that he needed some extra supplies. He purchased $2.031 worth of supplies from Silly Sue's Office Supply paying cash. On May 11, Crazy Carl rents canoes to his clients for 64 hours at $11.25 an hour. His clients paid for 48 hours in cash and the other 16 hours were added to client accounts. On May 13, Crazy Carl hires Joyful Jennifer. He thought she would be good for business since she is full of joy! Her duties will include collecting cash and assisting people into the canoes. It is expected that she will work 20 hours this month at a rate of $9.30 an hour On May 16. Crazy Carl went to the bank and talked to Larry Loaner about a loan. Bill, from the Boat Barn, needed $18,000 of the balance due from Carl. Therefore, Carl got a 4-year loan from he bank in the amount of $18.000 to pay off some of his balance from Bill's Boat Barn. The loan will be paid off in 4 equal installments due on May 16^th for each of the next 4 years. Larry will charge 9.20% interest on the loan. Interest will be paid with each installment. On May 19, Crazy Carl paid Andy's Ads $837 for informative flyers. The flyers contain information about Carl's new canoes and are expected to increase Carl's rental revenues by 45% in the next year!! Carl prefers to advertise using flyers. Carl's expenses this immediately. On May 22, Crazy Carl is having a HUGE SALE!!! Only $8 an hour to rent!! He rents canoes to his clients for a total of 88 hours. All of his clients paid cash for a change!! On May 24, Crazy Carl decided to pay divided of $377 to stockholders. On May 27, Crazy Carl pays Joyful Jennifer $212 cash for her excellent work. Congratulations to Jennifer as she earned the prestigious "Carl's Canoe Employee of the Month Award." On May 29, Crazy Carl received cash from some of his clients who had put their canoe rental fees on account. He received a total of $278 from client accounts
