Merchandising Company buys and sells a product called Zoom. Company is subject to 20% income tax rate. The account balances as of Jan. 1, 2022, the start of the year, were as follows:

	Debit	Credit
Cash	41,000
Accounts Receivables	20,000
Merchandise Inventory	52,500
Supplies	9,500
Investment in Marketable Securities (available for sale)	50,000
Pension Fund (long-term investment)	40,000
Equipment	360,000
Accumulated Depreciation-equipment		80,000
Accounts Payable		27,000
Common Stock, $10 par		350,000
Retained Earnings		113,000
Accumulated other Comprehensive Income		15,000
Treasury Stock (1000 shares)	12,000
Total	585,000

Merchandise inventory as of Jan 1st consisted of 3,500 units. Company uses Perpetual Inventory System using LIFO. The following transactions took place during 2022.

1. In order to raise capital, on Jan 1st, company issued and sold bonds par value $500,000, maturity 8-year, coupon rate 6%, interest to be paid semiannually. Market rate on issue date was 5.5%. After journalizing the transaction, prepare the amortization schedule on the Excel Tab entitled Schedule.

2. In order to raise capital, on Ja. 1st, company issued and sold 2,000 shares of 12% preferred stock at $100 par each.

3. Purchased a delivery truck (equipment) for $55,000. Paid $5,000 in cash and signed a note a 6%, 3-year note, requiring 36 monthly payments at the end of each month. After journalizing the transaction, prepare the amortization schedule on the Excel Tab entitled Schedule.

4. Purchased 50,000 units of Zoom at a cost of $15 each plus 8% sales taxes that was not included in the purchase price. Shipping cost was $2,000. The purchase was on account.

5. Sold 45,000 Zoom purchased in transaction above to Team America for a price of $30 each in cash. Applicable sales tax rate was 8% which was not included in price.

6. During year paid $700,000 of accounts payable.

7. In a fire sale, land and building obviously worth $300,000 and $100,000, respectively, was acquired for $320,000 in cash.

8. Collected $20,100 interest from bank on its saving account in cash.

9. Purchased Gina Company (a competitor) for the expansion of operations. Gina had $245,000 of equipment, $130,000 land, and $420,000 building with a $125,000 loan on it (per a notes payable) due in 4 years which is assumed by Rose. Paid $800,000 for this purchase.

10. Purchased $15,000 of supplies in cash.

11. Made the 1st semiannual interest payment on bond issued above.

12. Made the first monthly payment for the purchase of the truck in the above.

13. Collected $18,000 on accounts receivable.

14. Recorded hurricane losses on equipment. The lost equipment had cost company $65,000 and had accumulated depreciation of $30,000 as of the hurricane date. The loss met extraordinary requirements.

15. Paid for the following items related to the construction of a new shop. Make a composite journal entry.

1	Purchase of land	$20,000
2	Contractor for construction of the shop building	$100,000
3	Excavation costs for new building	$10,000
4	Commission fee paid to real estate agency	$1,500
5	Parking lots and driveways	$12,000
6	Paid interest on borrowed money of which $5,000 was during construction of new shop	$8,000
7	Cost of filling and grading the land	$3,000

16. Leased equipment for the new shop and made the 1st monthly payment of $1,500. The lease period is 30 months. The useful life of equipment is 36 months. The lease contract requires payment of $1,500 at the beginning of each month for the next 30 months. After journalizing the transaction, prepare the amortization schedule on the Excel Tab entitled Schedule. Implied market interest rate is 5.8%.

17. During an internal audit, company detected that during taking physical inventory at the end of last year for making adjusting entry, supplies on hand was overstated by $7,000. Income tax rate for last year was 20% as well.

18. Company closed its Mexico branch by selling the branch equipment that had cost $100,000 with accumulated depreciation of $12,000 for $110,000 in cash.

19. Paid salaries of $120,000. Applicable federal income tax rate is 20%, state income tax rate is 6%, FICA tax rate is 7.65%, Federal Unemployment Taxes 0.80%; State Unemployment Taxes 5.40%. Make a composite entry.

20. Paid $24,000 for utilities expense and $60,000 for the rent.

21. Declared and paid $55,000 cash dividends to preferred stockholders and common stockholders.

22. Made the 2nd semiannual interest payment on bonds issued above.

23. Made the 2nd monthly payment on purchase of the truck in the above.

24. Made the 2nd payment on leasing the production machine in the above.

25. Made the monthly pension deposit regarding the new employee (Jane) with bank.

Janes salary when hired was $30,000. She is entitled to retirement benefits after working for 30 years at the start of the 21st year. The retirement plan will last for 25 years. Per company practices, Jane is to be granted with a year-end salary increase of 3% per year effective Jan. 1st of each year that he works. The amount of annual retirement benefit is going to be 55% of Janes salary right before the start of the retirement and is to be paid at the start of each month. Any invested funds for pension will earn 5% compounded annually. Company is accumulating the necessary funds for Janes retirement benefits through equal monthly deposits at the end of each month while she is working (20 years).

Adjusting Entries:

26. Recorded depreciation - equipment $38,000, building $40,000.

27. The fair market value of its Investment in Marketable Securities (available for sale) in the above was $54,000.

28. A physical inventory count indicated that $2,800 supplies were left.

29. Make appropriate journal entries to record current liability portion of bonds payable, notes payable, and capital lease payable.

30. Recorded accrued income tax expense for the year.