NO INK, NO PHOTOCOPIES, NO PRINTOUTS Record the transactions in journal form Post the transactions to a ledger (T accounts) include the beginning balances Create a trial balance Record the adjusting entries Post the adjusting entries to the ledger Create an adjusted trial balance Create the 4 financial statements Net income = 3090 Cost of goods sold = 50% of the sale price Beginning Trial Balance 10/1/2022 Cash 5,692 Accounts Receivable 1,200 Allowance for Doubtful Accounts 120 Inventory 9,917 Supplies 190 Prepaid Insurance (4 months remain) 400 Equipment 20,000 Accumulated Depreciation 5,000 Accounts Payable 2,150 Notes Payable 8,000 Common Stock 12,000 Retained Earnings 10,129 37,399 37,399 Accounts Payable Terms Amount Canton Tire Co. 2/10, n/30 Eustis Supply Company n/30 50 Howard Auto Supplies 2/10, n/30 Marshall Radio Corporation 2/10, n/30 1,000 Perkins Battery Co. 2/10, n/30 I Randolph Supply Co. n/30 Walker Tire Co. 2/10, 1/15, n/30 1,100 Whitman Supply Co. n/30 2,150 Accounts Receivable Terms Amount Amdec Garage 2/10, n/30 50 Becker Tire Shop 2/10, n/30 Brownway Garage 2/10, n/30 200 Central Service Station 2/10, n/30 1 Evans Garage 2/10, n/30 Graham Auto Repair Co. 2/10, n/30 350 Johnson Tire Shop 2/10, n/30 Langdon & Fillmore 2/10, n/30 150 Portland Transfer Co 2/10, n/30 Rogers Service Station 2/10, n/30 Thompson Garage 2/10, n/30 450 1,200 Date 1-Oct Paid $600 for building and equipment rental 1-Oct Purchased $200 in merchandise from Marshall Radio Corporation on account, 2/10, n/30 1-Oct Purchased $450 in merchandise from Walker Tire Co. on account, 2/10, n/30 1-Oct Received $200 for sale of office computer (Equipment), $600 original price, $50 accumulated depreciation 3-Oct Sold $250 to Central Service Station on account, 2/10, n/30 3-Oct Sold $250 to Johnson Tire Shop on account, 2/10, n/30 3-Oct Paid $115 for advertising 3-Oct Paid $50 for Eustis Supply Company for invoice dated 3-Sep, $65 face, n/30 4-Oct Corrected $200 charged to Brownway Garage Instead of Becker Tire Shop 4-Oct Purchased $45 in store supplies 4-Oct Purchased $50 in office supplies from Eustis Supply Co. on account, n/30 4-Oct Purchased $250 in merchandise from Perkins Battery Co. on account, 2/10, n/30 5-Oct Paid $980 to Marshall Radio Corporation on account, $1000 face, 2/10, n/30 6-Oct Paid $1,078 to Walker Tire Co. for invoice dated 28-Sep. $1,100 face, 2/10, n/30 6-Oct Received $343 from Graham Auto Repair Co. for sale dated 27-Sep, $350 face, 2/10, n/30 6-Oct Received $441 from Thompson Garage for sale dated 26-Sep. $450 face, 2/10, n/30 6-Oct Sold $350 to Thompson Garage on account, 2/10, n/30 6-Oct Sold $350 to Highway Service Station on account, 2/10, n/30 6-Oct Sold $650 to Dorton & Dewey on account, 2/10, n/30 6-Oct Paid $510 for salaries 6-Oct Received $700 from cash sales 8-Oct Received 5196 from Becker Tire Shop for sale dated 29-Sep, $200 face, 2/10, n/30 8-Oct Received $147 from Langdon & Fillmore for sale dated 28-Sep, $150 face, 2/10, n/30 8-Oct Paid $36 for miscellaneous office supplies 8-Oct Purchased $700 in merchandise from Walker Tire Co. on account, 2/10, n/30 9-Oct Purchased $50 in store supplies from Randolph Supply Co. on account, n/30 9-Oct Paid $22 for printing booklets for salesmen (Miscellaneous Expense) 10-Oct Wrote off $50 from Amdec Garage for sale dated 12-Jul, $50 face, 2/10, n/30 10-Oct Sold $1,750 to Brownway Garage on account, 2/10, n/30 10-Oct Sold $550 to Graham Auto Repair Co. on account, 2/10, n/30 10-Oct Paid $196 to Marshall Radio Corporation for invoice dated 1-Oct, $200 face, 2/10, n/30 10-Oct Paid $441 to Walker Tire Company for invoice dated 1-Oct, $450 face, 2/10, n/30 12-Oct Sold $2,000 to Evans Garage on account, 2/10, n/30 12-Oct Sold $500 to Becker Tire Shop on account, 2/10, n/30 12-Oct Purchased $600 in merchandise (cash) 12-Oct Purchased $50 in advertising supplies from Whitman Supply Co. on account, n/30 12-Oct Purchased $1,050 in merchandise from Canton Tire Co. on account, 2/10, n/30 13-Oct Received $50 credit memorandum from Walker Tire Company for return of merchandise from invoice dated 8-Oct 13-Oct Received $245 from Johnson Tire Shop for sale dated 3-Oct, $250 face, 2/10, n/30 13-Oct Received $245 from Central Service Station for sale dated 3-Oct, $250 face, 2/10, n/30 13-Oct Paid Perkins Battery Co. for invoice dated 4-Oct, $250 face 13-Oct Allowed $50 of credit for Evans Garage for return of merchandise from sale dated 12-Oct 13-Oct Paid $510 for salaries 13-Oct Received $500 from cash sales 15-Oct Paid $90 for freight in charges 16-Oct Sold $700 to Rogers Service Station on account, 2/10, n/30 16-Oct Sold $350 to Portland Transfer Co. on account, 2/10, n/30 16-Oct Received $343 from Highway Service Station for sale dated 6-Oct, $350 face, 2/10, n/30 16-Oct Received $637 from Dorton & Dewey for sale dated 6-Oct, $650 face, 2/10, n/30 16-Oct Purchased $2,400 in merchandise from Walker Tire Co. on account, 2/10, n/30 17-Oct Purchased $50 in office supplies from Eustis Supply Co. on account, n/30 17-Oct Paid $637 to Walker Tire Co. for sale dated 8-Oct, $700 face less $50 credit memorandum dated 13-Oct, 2/10, n/30 18-Oct Received $50 for return of merchandise to supplier 18-Oct Paid $45 for miscellaneous office supplies 20-Oct Received $25 from Star Auto Repair for previously written off sale dated 22-Feb, 2/10, n/30 20-Oct Sold $1,450 to Langdon & Fillmore on account, 2/10, n/30 20-Oct Sold $550 to Dorton & Dewey on account, 2/10, n/30 20-Oct Sold $350 to Evans Garage on account, 2/10, n/30 20-Oct Received $1715 from Brownway Garage for sale dated 10-Oct, $1,750 face, 2/10, n/30 20-Oct Received $539 Graham Auto Repair Co. for sale dated 10-Oct, $550 face, 2/10, n/30 20-Oct Paid $1029 to Canton Tire Co. for invoice dated 12-Oct, $1,050 face, 2/10, n/30 20-Oct Paid $510 for salaries 20-Oct Received $500 from cash sales 22-Oct Received $1,911 from Evans Garage for sale dated 12-Oct, $2,000 face less $50 credit return dated 13-Oct, 2/10, n/= 22-Oct Received $490 from Becker Tire Shop for sale dated 12-Oct, $500 face, 2/10, n/30 22-Oct Purchased $400 in merchandise from Howard Auto Supplies on account, 2/10, n/30 23-Oct Purchased $50 in advertising supplies from Whitman Supply Co. on account, n/30 24-Oct Sold $300 to Johnson Tire Shop on account, 2/10, n/30 24-Oct Sold $350 to Highway Service Station on account, 2/10, n/30 25-Oct Paid $2,352 to Walker Tire Co. for invoice dated 16-Oct, $2,400 face, 2/10, n/30 26-Oct Allowed $50 of credit for Highway Service Station for damaged merchandise from sale dated 24-Oct 26-Oct Received $343 from Portland Transfer Co. for sale dated 16-Oct, $350 face, 2/10, n/30 27-Oct Sold $1,400 to Thompson Garage on account, 2/10, n/30 27-Oct Received $50 credit memorandum from Howard Auto Supplies for damaged merchandise from invoice dated 22-Oct 27-Oct Paid $510 for salaries 27-Oct Received $850 from cash sales 27-Oct Purchased $2050 in merchandise from Canton Tire Co. on account, 2/10, n/30 29-Oct Purchased $50 in store supplies from Randolph Supply Co.jon account, n/30 29-Oct Received $1,950 from Rogers Service Station for sale dated 16-Oct, $1950 face, 2/10, n/30 30-Oct Allowed $50 of credit for Thompson Garage for return of merchandise from sale dated 27-Oct 30-Oct Paid $75 for utilities 30-Oct Paid $25 for telephone bill 30-Oct Received $350 from Thompson Garage for sale dated 6-Oct, $350 face, 2/10, n/30 30-Oct Received $343 from Evans Garage for sale dated 20-Oct, $350 face, 2/10, n/30 31-Oct Paid $800 for new office computer (Equipment) 31-Oct Sold $600 to Becker Tire Shop on account, 2/10, n/30 31-Oct Received $12 credit memorandum from Canton Tire Co, for return of merchandise from invoice dated 27-Oct 31-Oct Paid $87 for freight in charges 31-Oct Paid $400 cash dividend 31-Oct Received $400 from cash sales Estimated uncollectable Accounts Receivable 10% Remaining Supplies 300 Remaining months of insurance 3 Interest on Notes Payable 6% Depreciation Salaries accrued 250 255