Karen Harris starts her own scooter retail business, City Rides, on December 1, 20x2. The business operates as a proprietorship from a rented space near a busy downtown area. Harris hires Jim Waters as the sales associate and assistant manager of the business. The following transactions take place during December 20x2.

Transactions
Dec. 1	Harris deposits $45,000 into the business bank account. In exchange, she receives capital in the proprietorship.
1	Harris writes and mails check #001 for $2,400 for rent. The rent payment covers rent for the three months ended February 28, 20x2.
2	Harris purchases office equipment for $1,800 by check #002.
2	Harris purchases office supplies for $420 by check #003.
2	Harris purchases 20 Model X mopeds at $500 each and 15 Model L mopeds at $800 each, costing a total of $22,000, on account from a supplier, Fun Brands: Harris elects to use the first-in-first-out (FIFO) method to account for inventory. Fun Brands provides an invoice with the following terms: 2/10 net 30.
9	In the first week of operation, City Rides sells 16 Model X mopeds at $750 each: 10 are sold on account, and the rest are sold for cash.
12	City Rides makes payment to Fun Brands in full settlement of accounts payable by check #004. Payment is net of the purchase discount. Hint: The terms are 2/10 net 30, and any purchase discount received reduces the cost of inventory.
13	City Rides purchases 10 Model X mopeds from Fun Brands on account at a cost of $520 each.
16	The sales for the week are as follows: 6 Model X mopeds sold on account for $750 each