Lay Perfect Pillow Company sells specialty pillows and accessories to customers. Its fiscal year ends on December 31. The following transactions occurred in the current year:

1. Purchased $250,000 of new pillow inventory; paid $90,000 in cash and owed the rest on account.
2. Paid employees $180,300 in wages for work during the year; an additional $3,700 for the current year's wages will be paid in January of the next year.
3. Sold pillows to customers for $750,000; received $500,000 in cash and customers owed the rest on account. The cost of the pillow inventory to Lay Perfect Pillow was $485,000.
4. Paid $17,200 cash for utilities for the year.
5. Received $70,000 from customers as deposits on orders of new pillows to be sold to the customers in January of the next year.
6. Received a $1,930 utilities bill for December of the current year that will be paid in January of the next year.
7. Sold a pair of skis from inventory in a ski shop to a customer for 700$ on account.
8. Borrowed $2,300,000 from the bank on December 1, signing a note payable due in six months.
9. Purchased a new snowplow for $98,000 cash on December 31.
10. Purchased ski equipment inventory for $35,000 on account to sell in the ski shops.
11. Incurred $62,000 in routine repairs expense for the chairlifts; paid cash.
12. Sold $390,000 of January through March season passes and received cash.
13. Sold a pair of skis from inventory in a ski shop to a customer for $700 on account. The cost of the skis was $400). (Hint: Record two entries.)
14. Sold daily lift passes in December for a total of $320,000 in cash.
15. Received a $3,500 deposit on a townhouse to be rented for five days in January.
16. Paid half the charges incurred on account in (c).
17. Received $400 on account from the customer in (f).
18. Paid $245,000 in wages to employees for the month of December

Make a journal entries with explaining why